Dom's view
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FTSE to fly shortly
FTSE to fly shortly
EUROPEAN OVERVIEW
I cast doubt last week upon the wisdom of being short the indices and long gold at this time, as many retail punters seem to be. The action since then has borne out my view, as equities are once again frothing higher, while the yellow metal is melting. I see no reason why these trends should come to an end yet. Ultimately, I reckon we will indeed see the secular bear market in stocks resume, and gold surge to new record highs. But by the time “ultimately” arrives, those who bet prematurely on the outcome will have been cleaned out. I therefore continue to advise going with the flow.
I shall be speaking about “the Ideal Portfolio” at the Lecture Club in London on Thursday 28 November
It is now seventeen trading days since the FTSE went into its correction. I see this ending happily, however, with another confident burst to 6875. Everything points to such an outcome, as I see it: seasonality, momentum, and sentiment.
DAY: Buy again when the 21- and 55-EMAs cross.
POSITION: Nothing for now.
SUPPORT RESISTANCE
6619.7 6789.7
6587.2 6732.3
6541.2 6718.2
6485.7 6699.1
