There’s a distinct air of near-term bearishness about. Some 78% of IG Index clients are currently short of the FTSE 100 index, for example. After such a strong rally, they probably have a reasonable expectation that the index should give up some of its gains, if only in advance of renewed upside. I do not share their desire to be short at this moment, however. While the UK market has softened in recent days, the fashion in which it has done so has been unthreatening. This is the hallmark of a counter-trend move. Put simply, the FTSE and also the DAX are merely laying the groundwork for the next leg of their bull markets. I happen to see it coming sooner rather than later.
I'm still ready to buy FTSE and EURGBP if the opportunity arises, as well as shorting GBPUSD.
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