By Dominic Picarda.
If the Euro is to survive and its weaker members to enjoy recovery, the single currency needs to get a lot cheaper. The ECB made the right choice by cutting interest rates yesterday, but more will be needed in order to devalue the Euro and maintain the fragile pick-up on the continent. In due course, I foresee more aggressive monetary measures still. In the immediate future, I remain bullish of the DAX in particular, but am leaning towards neutral on the FTSE and S&P, which both broke sharply lower yesterday. I am not hurrying to trade ahead of today’s US employment figures, an event around which I have consistently lost money over time.
My next update will be on Monday, 11 November.
I shall be speaking about “the Ideal Portfolio” at the Lecture Club in London on Thursday 28 November
DAX 30
Wednesday: “I am looking for the German index to break upwards towards a new record peak at 9153.” The DAX spiked to and through my target yesterday, although you’d have needed to be very fleet of foot to profit from it. I remain bullish and target 2900 before long.
Support: 9000.1– Resistance: 9184.7
Support: 8938.2 – Resistance: 9143.1
Support: 8835.7 – Resistance: 9109.1
Support: 8800.1 – Resistance: 9069.8
DAY: Stay long or buy a further rally back through the 21-fourhourly EMA
POSITION: Stay long.
Dominic Picarda CFA, CMT writes the Trader column at http://www.investorschronicle.co.uk/comment/the-trader