Rachel Reeves Saves CMCThe share prices of spread-betting brokerages IGG and CMCX took a hit in the run up to the Autumn Statement - with investors fearing that Reeves, and her boss Bell, would widen their gleeful tax-grabbing desires towards spread-betting. Whilst there were some changes to gambling taxes they did not touch spread-betting (at least this time).
In the run up to the budge we saw CMCX drop to the 200p area - a notable level of support. It may be argued that CMC's push lower was more driven than #IGGs due to the CMC Owner Peter Cruddas public support of the Conservative Party.
Anyway we can see that price rebounded strongly when it became clear that spread-betting rules would not be changed (for the moment). CMC popped from 200p to 300p and the question is now: what next? Previous moves to this area have seen rejection and moves lower. I will watch over the next few weeks to see whether it can hold the 300p level, and form a base, or whether the price action shows CMC wallowing at these heady heights before a return lower.
