My call for a bounce in the DAX and FTSE worked out nicely yesterday. The question that arises now is whether that was the start of a more sustained move higher of the sort that I am expecting for Q4, or whether the indices will merely extend their recent choppiness. My bias for now is trying to catch further bounces after intraday dips in both these indices. Until we have seen more bullish follow-through, I would keep long positions small.
for analysis of some leading equity indices.COMMODITIES OUTLOOK
09.44
I was right to be bearish on commodities yesterday, as the markets I cover here took a further drubbing along with EURUSD. And, my bias remains towards shorting today as there are few signs of a meaningful intraday low forming. Particularly if the likes of gold and Brent rally unconvincingly, I would be ready to jump in as the bounce petered out.
WALL STREET OUTLOOK
13.18
I have been looking for a decisive up-day in the US indices in order to help signal the start of the larger rally to new bull-market highs that I am predicting. Yesterday’s action certainly qualifies as such. From trough to peak, the Nasdaq 100 rose by almost 1.3%. Volumes were decent enough by recent standards too. The stage is well set for further gains in my view, given the healthy (not-too-bullish) state of sentiment, as well as the near oversold levels on Wall Street’s daily charts. As long as any pullback today is only gentle, I will be looking eagerly for long positions.
for analysis of the US indices.
