09:50am   Had a few issues with our website this morning so this Market Update is slightly delayed today. At home this morning catching up on emails and doing some chart watching then clay pigeon shooting this afternoon with the usual group of friends.

Market Update:

Traders and investors focus today is solely on Janet Yellen and the U.S. Federal Reserve’s interest rate decision later this evening. The chances of an increase in the minimum lending rate is said to be around 80% this week and to a certain extent the rise is already priced into the equity market so we will probably see a subdued morning’s trading before some volatile moves as the U.S. trading session comes to a close.

European equities have opened largely flat this morning despite a largely positive overnight Asian session with the main Japanese index, the Nikkei 225 rising 484 points and the Hang Seng Index up over 2% as well. Even though there is still massive over producion and lack of demand in the Crude Oil market, the U.S. WTI Crude price rallied nearly 3% yesterday although this retrace may well be short lived as the daily chart is now well overbought once again and poised for further falls as we move to the end of the last full trading week of the year.

The Gold price is still well under its 20-day moving average on the Daily chart in a prolonged down-trend although it is now slightly above its $1046 near-term support, this morning it is currently sitting at $1064 but looking fairly bearish with the 4-hour chart quite overbought.

 Trading Diary:

10:10am   As I had envisaged, markets are quite subdued this morning so I am taking this opportunity to go off on a cycle ride as there’s not much to get excited about on my group of favourite charts.

13:05pm   The U.S. trading session is starting soon and there looks to be a possible ‘long’ trading opportunity developing on the S&P500 index so will report back.

13:25pm    Just entered a ‘long’ position on the S&P500 using the trendFX strategy-1 pattern.  Quite a risky time to get into the market so not a good idea for new traders but I’m not at all bothered about the odd loss so I’ll keep a tight stop loss and see what happens in a few minutes when the market should take off one way or the other. My stop is just 27 pips.

14:55pm   Although the S&P500 was quite volatile , it’s really taken off now so I am now out of my position as it retreating back from a trade profit high of+56 pips to an acceptable +30 pips.  Nobody wants a potentially winning trade to turn into a loser !  Off out now for the rest of the afternoon.