Dominic Picarda’s Trading Pick 11th November 2013

By Dominic Picarda.

The turbo-charged rally in equities shows few signs of exhaustion, with Thursday’s losses quickly reversed on Friday. And yet, there seems to be deep disbelief among retail punters in the UK, going by the latest positioning data I have seen. This suggests a significant weight of shorts in S&P, FTSE and especially the DAX. At the same time, there is a big weight of money on the long side in gold. Perhaps the majority knows something I do not here, but I am going to stick with the trend, eyeing up more gains in the indices and further downside in gold.

My next update will be on Wednesday, 13 November.

I shall be speaking about “the Ideal Portfolio” at the Lecture Club in London on Thursday 28 November

FTSE 100 

Friday: “I foresee the bull move towards 6876 picking up again before long, though.” And that’s what seems now to have happened, with the FTSE’s 21-fourhourly EMA poised to cross back above its 55-EMA before long. I remain optimistic here for now, targeting those bull-market highs.

Support: 6732.3 – Resistance: 6876.2

Support: 6718.2 – Resistance: 6841.1

Support: 6699.1 – Resistance: 6808.2

Support: 6619.7 – Resistance: 6789.7

DAY: Buy a bounce off the 21-hourly EMA.

POSITION: But a bounce off the 21-hourly EMA.

Dominic Picarda CFA, CMT writes the Trader column at http://www.investorschronicle.co.uk/comment/the-trader