Fundamentals The National Health Service The NHS is under a vast amount of pressure due to the lack of funding by the UK government. Last year, British authorities funded the NHS of a total of £700M but unfortunately the bailouts to help the NHS cope with winter pressures have not reached front line services in some parts of the country, Britain’s top emergency doctor has said, as the political dispute over crumbling A&E performance deepened.
The number of UK citizens aged 65 and over has increased by 5.5% in the last 50 years, thus increasing the demand of both private and public healthcare sectors. However as we are witnessing, the public healthcare sector (NHS) is suffering mostly. The government debt as a percentage of its GDP is 90.6% and is the highest of UK Public sector expenditure. So enough about the government, as an investor I am likely to stay cautious with my investments as the government will likely try to save the NHS by either
. Making it Public company This option can be a totally different scenario to our current crisis.
. Bailout With this in mind I would believe that they will need to get the money from somewhere, perhaps by raising interest rates, borrow more, increase taxes or ultimately face a default in debt crushing its local index.
However, my target is short term because I am still waiting on the Greece Snap Election below.
Greece Snap Election 25th Jan The UK can suffer a minor correction within the next couple of weeks before the Greece Election calls its way. The ECB has said to have outlined a 590Billion Investment Grade QE plan which can mean that the renegotiation plan for the Greek politician party Syriza can go well accordingly. This mean that Greece CAN be bailed out for the 4th time in 5 years. However if Greece isn't successful in the negotiation then we could see heavy volatility in the markets due to uncertainty as Greece waves goodbye to the Eurozone.
This will have a bad influence on the Euro currency which I hope that traders and investors have already acted upon. I'm already short on the UK since 6560 along with the EUR
Technicals Close below SMA55 + Trend Line Bounce = Short Opportunity
Possible Correction level can vary between average sell offs and rallys in the last couple months. I have calculated that for you and here we have an average of 85 -100 pips after the close.