That’s when the UK becomes Iceland without the geysers, interest rates will rise and you don’t want to be holding Sterling or bonds.
What Trades Am I Looking At?
The main way I’ll be backing this view is through selling the
FTSE index, though again I need to choose when it’s relevant and when to stand aside. Yesterday I closed my short position ahead of the US payrolls roulette, but was too slow to get back on board. That’s OK, I’ll wait for the next ‘green shoots day’ to load up again.
I’m not an equity analyst, but I’m looking to build up a few strategic short bets in banking, retail and travel.
I’m already running short trades in Lloyds (these are from ages ago and well onside) and Barclays (yesterday at 290.5p).
In the retail sector I’m watching Kingfisher. Kingfisher failed at its 21-day MAV and dropped below its 50-day MAV with an RSI below 50. Just above 200p would be a sensible place for a stop loss and with a first target of 160p I’ll be looking for a higher entry point than the current 178p.
In the travel sector I’m looking at British Airways and TUI Travel. I might be too late to the party with BA; it’s near the year’s low and has a lot of bad news built into it. On the other hand it could become a total basket case. For the moment I’m holding off, watching for a close below 111p.
TUI Travel has failed to break above its 21-day descending MAV, but is just holding support at the 200-day MAV at 227p. Momentum is failing with an RSI at 43 so I’m watching for a close below the 200-day MAV to target 211p.
That’s the game plan; if anyone out there knows of a good reason why I shouldn’t trade these stocks, let me know please.
