By Dominic Picarda.
Not very much is happening in the indices, which I see as supportive to my bullish case. How so? When markets go sideways or drift mildly lower after strong gains, it’s usually a precursor to a renewal of the prior uptrend. That is just what I am expecting to occur, and probably sooner rather than later. Spread bettors on the whole don’t seem to share my view at this moment. Some two-thirds are shorting the DAX and S&P 500, while four-fifths of them are long gold. Widespread scepticism towards equity markets is, of course, thoroughly healthy. I still seek buying opportunities therefore.
I shall be speaking about “the Ideal Portfolio” at the Lecture Club in London at 6.30pm on Thursday 28 November
DAX 30
While the DAX has so far failed to pick up its recent rally anew, I still think that’s what’s going to happen. The halting pace of the sell-off is the key clue here. I look for 9289 very soon indeed. The only slight drawback is the ongoing daily overboughtness.
Support: 9143.1 – Resistance: 9289.2
Support: 9109.1 – Resistance: 9246.5
Support: 9069.8 – Resistance: 9200.1
Support: 9000.1 – Resistance: 9184.7
DAY: Stay long or buy a bounce from current levels.
POSITION: Stay long.
Dominic Picarda CFA, CMT writes the Trader column at http://www.investorschronicle.co.uk/comment/the-trader