Spanish market floor in? Probes March 2009 low at 6650. update – closed on highs for the day

Following on from my posts last week where I stated that I think the Ibex is making an important low, todays opening move to scratch the lows of 2009 is my trigger to go “balls to the wall” long. Am in for a 2-3 weeks swing trade now and looking for a move to 7400-7600 in quite short order.

Update – Nice price action in the Ibex today – materially outperforming other indices and making a robust and measured recovery off the 3 year lows this morning. Music to a bulls ears. My conviction in this trade and the latent value in Spanish equities is very strong. With the political issues in France and Germany out in the open, there is an argument to say that the bad news is now out there and the washout this morning was the final dump. Recoveries are made in this type of environment, contrary to what many people think, the outlook generally remains bad as prices rise and people scratch their heads… The stock market typically discounts beyond 6 months.

Update 2 – Very sharp reversal today in the Ibex with the index looking to close on its highs – very solid technicals for the long swing trade I’m in. I wouldn’t be surprised to see a gap up tomorrow, opening over 7000. Daily chart shows a nice triple bottom in place now and lots of room on the upside on both the hourly stochastics & RSI measures.