Having been the ugly sister among the indices for months, the FTSE 100 is finally the belle of the ball. The UK large-cap index made fresh post-2009 bull-market highs yesterday, albeit only just. From a fundamental perspective, the FTSE is significantly cheap right now, both in relative and absolute terms. There is plenty of justification for its uptrend to continue in the months ahead. For now, I would be looking to buy the recoveries from intraday dips. The index is not overbought on a daily or intraday view, which leaves scope for further gains imminently.
for analysis of some leading European markets.COMMODITIES OUTLOOK
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Copper and Brent remain my commodity trades of choice right now. Having shown resilience during the mini-correction of recent sessions, they are once again moving convincingly higher, particularly the red metal. In the context of a generalised “risk-on” phase, I can see both of these continuing to flourish near-term, more so than the precious metals, whose charts continue to leave me cold. Buying on bouncebacks from dips, especially in copper, is the name of the game for now.
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WALL STREET OUTLOOK
Joe Public is getting warmer towards the stock market too. The latest AAII data put the bulls on 46.4% versus 26.6% bears. A gap of 20 points is not too much to worry about at this stage. As time goes by, and once the gap widens, it could become more of an obstacle to progress. Right now, though, I believe the rally in stocks to be only in its middle stages. The S&P, Dow and Nasdaq can all progress higher from here in the immediate future. I look to buy small intraday dips.
for analysis of some leading equity indices.
