Shifting from bullish to bearish is not something to be taken lightly in a strong uptrend. Rallies tend to last for much longer than even the most optimistic traders ever expect, especially when they are being driven by such powerful central-bank intervention in the system as we are currently seeing. As such, I have still not changed my position from that which it has been for many weeks. I still think that the FTSE can head higher from around current levels, and that EURGBP can too.
What if I am wrong? That is, of course, entirely possible, and we could now get more of a correction. In that event, I will start seeking out small short positions. However, I should stress that I would not see any correction lasting for that long or retracing much ground. We could be taking about 5 per cent in the case of the FTSE – if that.
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