Re: Wallstreet1928 Analysis & live calls on FTSE,DAX,S&P...aimed to help New traders
hi,
do you think that the stock indices will reach easy the year highs ? i belive yes ... but my question is what next ...
I think you should re-phrase the question to;
Do you think QE 2 is priced in to the market already?
Answer = Yes
but given the ability for the market to float up on light volume then 5800 looks inevitable
in order for us to push higher we need to look at the following factors
1. US dollar - if it keeps getting crushed then we move higher as commodities inflate and move higher - FTSE is heavily weighted toward commods
2. Oil - if we break $84.5 decisively and push higher the oil stocks will follow
3. Gold, coper, silver - these need to move higher based on fundamentals and not just cheap dollar in order to sustain the mining sector.
4. one must follow risk FX ........wax on , wax off, risk on , risk off !!
I usually follow eur/jpy and aus/usd as a risk barometer , if these two pair move higher then FTSE 100 will follow