Ibex 35 analysis today: protagonists Banco de Sabadell, Colonial and Merlín Properties

  • At 8:55 a.m., the future of the Ibex 35 fell by 0.79% to 7,384 points
  • Iberdrola loses the 10 euros
  • Colonial could drop to 4.16 euros

Recent sessions have highlighted the palpable “fear” among investors, who continue to punish equities in the face of the arrival of an economic recession after the virulent declarations of the members of the Federal Reservel (Fed). Wall Street
closed yesterday with further lows, highlighting a S&P500 (-0.21%) which has lost more than 23% since January to 3,647 points, a level it had not crossed since December 2020.

Yesterday was the turn of Evans (Chicago Fed), adding more pressure to the market by commenting that he considers “an increase to 4.5 – 4.75% to control inflation in the United States”, so it will end up causing the dreaded recession in the United States. Considering this, the The US 10-year yield climbed to 3.982%maximum since 2010.

In Europe, the focus is on inflation data in Germany tomorrow Thursday and Friday it will be the turn of the Eurozone, while the German Bund continues its bullish trend and is already trading above 2.24%. In Spain, in the absence of CPI data in tomorrow’s session, the Spanish 10-year bond continues to climb, trading at 3.445%.

European stocks showed mixed signs yesterday, but heavyweights returned to record further declineswith him Dax 40 (-0.72%) falling to its two-year low, while the IBEX 35 (-0.84%) fell to 7445.7 points, catching sight of yearly lows.

The Spanish stock exchange closed again with losses, accumulating three consecutive sessions in negative. The situation of the Ibex 35 is not positive, since the evident economic slowdown in Europe will affect cyclical companies. For this reason, breaking the support of 7,500 points, the next target presented by the Ibex would be 7,300 points, a minimum collected in March 2022.

Within the Spanish selective, the correction continued one more session in the real estate sectorwith a market that has once again punished Colonial (-2.80%) and Merlin Properties (-3.28%), the two values ​​again marking new annual lows. Colonial has lost the €5 benchmark and is now targeting the critical support of €4.16, the October 2014 level, while Merlin will attempt to hold €7.50.

Griffols (-4.63%) it’s another company that suffered during yesterday’s session, losing the psychological level of 10 euros per share after leaving more than 50% of the May highs. Now, the next major support is around 9.10 euros.

Yesterday the electric ones presented decrease, with Iberdrola (-2.30%) and Endesa (-2.42%) succumb to market volatility. The first loses the reference of 10 euros per share, now favoring the support of 9.5 euros, while the second will seek support at 16.18 euros.

Bank of Sabadell
(-6.04%) yesterday plunged the Spanish Stock Exchange, after meeting the resistance of 0.80 euro, for which it returns below 0.75 euro, an area which continues to cause many quarrels between bidders and applicants.

Finally, today we will have relevant macroeconomic data, among which we highlight:

  • 9:15 a.m. -> Statements by Lagarde, President of the ECB
  • 4:00 p.m. -> Home sales pending (August) in the United States.
  • 4:15 p.m. -> Statements by Powell, Chairman of the Fed
  • 4:30 p.m. -> IEA Crude Oil Inventories

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How to take advantage of the opportunities of this market? Example of operation.

To illustrate how to trade in the example, we will use the Ibex 35. At IG, we could trade this market with CFDs, barriers, vanilla options and Turbo24. We will retain the latter for the example, since it is a product quoted on a 24-hour market, which allows us to adapt the leverage effect of our operations and to be covered against gaps market, the minimum purchase being a Turbo24 (equivalent to €0.01 per point).

If the first scenario is confirmed and decided to enter bullish, we would buy 100 long Turbo24s (1 euro per point). Imagine that the Ibex 35 is trading, for example, at 7780 points. We could set the exit level or knock-out (guaranteed stop) 100 points below the entry price. If at that time the price of the Turbo24 is 1,234 euros, the guarantee (remuneration) requested will be 123.4 euros (100 Turbo24 x 1,234 euros for each Turbo24). The leverage of this operation would be 60.20 times (7,800 / 123.4 euros = 60.20 times). Additionally, it has the advantage that if there are increases in volatility when the market is closed that trigger our knockout, the trade is not closed. This implies that if when the spot market opens it does so in our direction, we will continue inside and we may continue to gain profits. If, on the other hand, when the market opens, it does so at a price equal to or higher than our knock-out price, we are assured of the maximum loss at that originally deposited amount, so we are hedged against deviations from the bull market.

If the second scenario is confirmed and decided to enter bassist, we would buy 100 short Turbo24s at an Ibex 35 price of 7,600 points. One could put the knockout level, for example, 100 points above the entry, with a Turbo24 price of 1,905 euros, the requested guarantee (retribution) will be 190.5 euros (100 Turbo24 x 1,905 euros for each Turbo24). The leverage of this operation would be 39.89 times (7,600 / 165 euros = 39.89 times), retaining all the advantages explained above and protection against the negative balance in the event of gaps in bear markets.

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