FTSE 100 – seven years of plenty; now seven years of famine?

Will the stockmarket build on the gains from the general election? John C Burford examines the charts for clues.

With the UK election results still ringing in our ears, I thought I would go a little off-piste today and offer my take on the FTSE, which rallied strongly on Friday. This reaction was entirely normal because many had forecast a hung parliament and had placed bets that the FTSE would decline if Labour won.

Needless to say, when a result is unexpected', markets will react sharply the wrong' way.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.