“Omega-Trading”– Profits Booked For FTSE Short Trade …

Oct. 7, 2010 - PRLog -- Clients of boutique brokerage, “Omega-Trading”, who followed an August 5th trade recommendation to take up short positions on the UK’s benchmark index, the FTSE 100,  reportedly booked profits after the exchange fell by over 2% in one day.

The firm’s justification for the recommendation revolved around the fact that the index had been struggling to break cleanly above the 200 day moving average which traders interpreted as auguring a pullback. The recommendation also aimed to take advantage of what “Omega-Trading” expected to be news on quantitative easing from the US Federal Reserve, worse-than-expected data on initial US jobless claims and downward revisions to UK GDP forecasts.

The index subsequently fell sharply from the 5370 entry point to as low as 5187 on FTSE futures contract. “Omega-Trading” advised clients to cover the short position within 24 hours of the trade being placed. Many of the firm’s subscription clients booked 150-point gains whilst some managed more.

“Omega-Trading” maintains its gloomy outlook on the UK as austerity measures imposed by the government begin to result in lower growth and the firm also believes that the Bank of England may reintroduce its paused quantitative easing program at the next meeting of the Bank’s Monetary Policy Committee.