As a big-picture bull on European equities, I want instinctively to be long right now. From a fundamental perspective, I reckon the likes of the DAX and the FTSE offer tremendous long-term value, and that very decent gains are in the pipeline before too long. Another day of buying yesterday has certainly added to the near-term bull case, although it is not yet a cast-iron buying opportunity. The German and UK indices have a bit more work to do in order to re-establish their uptrends, in my view. My bias today is towards long positions once more. So long as the indices hold up above certain key levels, the bounces should be worth buying.
Click here for analysis of some leading equity indices.
Rather than complete collapse, the main risk in commodities now is continuation of the wide-ranging choppiness that has characterised recent weeks. I said yesterday that I was not convinced whether the move upwards on Monday qualified as the real deal or not. Yesterday’s hesitancy in the price action has merely compounded those doubts, although I am still just about still willing to go long, especially of silver and copper.
Click here for analysis of some leading commodities and EURUSD.
There will be no Outlooks on Friday 23 November, as I am away from the office all day.
WALL STREET OUTLOOK
Sentiment remains supportive of the case for a significant rally to take place on Wall Street. The latest Advisors Sentiment survey from Investors Intelligence showed that 37.2% of pundits were bullish and 27.7% bearish, a gap of 9.5%. That’s pretty much where we were a week ago, and it represents a healthy level of cynicism, in my eyes. Of course, there is another interpretation: that we are now in an early-stage bear market, such that this low sentiment reading will head very much lower still, until the bears significantly outnumber the bulls. That is not my reading, however. I am on the lookout for long positions in the S&P and Nasdaq 100 today.
Click here for analysis of the US markets.
MORE FROM DOMINIC PICARDA...
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.
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