EUROPEAN OUTLOOK
07.26
The rampant FTSE 100 made new bull-market highs yesterday, in line with my call. As such, it is around overbought levels on its daily chart (RSI 70%) for the first time since the end of 2010! That the index has never been overbought since then speaks to its weak performance for much of that time. However, this also equates to catch-up potential in my mind. UK large-caps are cheap and well poised to break significantly higher as fears over Europe and a sharp slowdown in global growth recede.
I am again looking for longs here, as well as in the DAX, EURGBP and GBPUSD.
Click here for analysis of some leading European markets.
COMMODITIES OUTLOOK
09.58
The Euro’s comeback yesterday caught me totally off guard. Since I was sitting it out on EURUSD, it didn’t make much of a difference. Gold and silver both leapt in response, but fortunately without first having triggered my shorting levels. I am a little unnerved by the latest pullback in copper and Brent, which have been two of my favourite trades here of late. However, I believe that this will turn out to be yet another buying opportunity, so am on the lookout for strength today.
Click here for analysis of some leading commodities.
WALL STREET OUTLOOK
12.24
I discussed in this week’s main column how the S&P has tended to reverse around previous highs before breaking above them. The index is now once again knocking on the door of its September (and bull market) highs at 1474. One reason that this may not prove too much of a hurdle, however, is that the S&P is not overbought on its daily chart. Its relative strength index reading was a mere 64.6% last night, short of the 70% overbought threshold. This leaves scope for the market to press higher, and I continue to seek long positions especially in the Dow.
Click here for analysis of some leading commodities.
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