Tug of War

As expected, volatility was the name of the game last week. Fortunately Apples' weaker than expected numbers on Tuesday gave us the opportunity to realise our profits at our target price of 1330. The market is currently being pulled between the two conflicting forces of slower economic growth on one hand and the injection of new liquidity by the world's central bankers on the other. Thursday and Friday's rally has left the market still in an unresolved state to the downside, so for the forthcoming week we will re-enter our short position, recommending an immediate sale £6 per point first thing Monday, we will sell a further £4 per point at 1397 and a final £6 per point should the market rally up to 1413. A stop loss should be set at 1427. Our target price this week is 1334.