I shorted the FTSE yesterday morning but later stopped myself out at breakeven as the US indices surged.
However, it is too early to say for sure whether the recent correction has now run its course. The two dominant time cycles leave room for a little more selling before the larger uptrend reasserts itself. If I do short again, it will most likely be in either the FTSE or the DAX, and only in small size. And I would regard further intraday oversold lows in the US indices as a good buying opportunity, especially in latter stages of next week.
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From a time-cycle perspective, there is room for copper to rally heading into April. The 38-day cycle in the red metal has bottomed out and this could make for continuing gains over the coming days. However, the up-move we have seen so far has not been especially impressive and I will not turn outright bullish until the price is back above its 200-day EMA. The larger bull market in copper is not yet over, as I see it, and I expect to reach 401¢ and above in due course.
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Dominic Picarda is a Chartered Market Technician and has co-ordinated the IC's trading coverage since 2006. He is a regular speaker at trading and investment events and also holds the Chartered Financial Analyst qualification.