Markets are often very quiet in August. Although 2007 and 2008 proved an exception to this rule, 2009 seems to be reverting to type. Maybe the Cricket’s got something to do with it, at least in the UK.

I can imagine the UK stock market could be very quiet today as we all watch to see whether our 300-odd for 8 is a good score. I afforded myself the afternoon off yesterday to sit down and watch the first day, and personally I felt that the pitch wasn’t quite as favourable for batting as usual Oval pitches, but we’ll have to wait until the Aussies bat to find that out, I guess!

Anyway, still in Cricket mode I was asked by a journalist friend for a quote on the Footsie this morning. Here’s what I furnished the poor chap!

“During the week just gone the market has once again held above key support at 4608-14.5 (looking at the Sep Futures here), and all the time this is the case we’re going to stick with the bulls, and look for a move through 4778 to 4831 then 4919.5 then 5000.

If our important support level at 4608 did give way we could quickly see an unraveling of the rally seen in the last few weeks of July.

Maybe England winning the Ashes will be the catalyst for the upside break so we’ll have to wait until Monday. Now that is the ramblings of a mad man!  The most likely scenario is an Australian win and a continuation of boring uncertain, rangy price action in the FTSE until after Labour Day at the start of September. Trying to “pick” direction for Equity indices in August can often be a thankless task, so I know how Andrew Strauss feels”.

Have a good weekend. Best of luck to England! And let’s hope England can make it through to Monday so I can watch another stunning conclusion a la 2005. I am at the V Festival all weekend, so don’t want to miss the excitement…. unless the Aussies roll us over, then I don’t care!

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COME ON ENGLAND!

Cheers,

Clive.