In the meantime, I am seeking to short the FTSE and DAX, as well as EURGBP. Their recent bounces have reversed hard and I think a retest of the sell-off lows is in order.
for analysis of some leading equity indices.COMMODITIES
The Euro is back at levels last seen in the summer of 2010. But I do not see its downtrend as yet having run its course. There is no end in sight to the Greek crisis, while the single currency is not at completely oversold extremes either. In this environment, it’s hard to be positive about the outlook for commodities. Following my unsuccessful long position in gold earlier this week, I am now looking for shorting opportunities. A retest of the recent lows in both the yellow metal and in silver is likely on the cards, in my view.
for analysis of some leading commodities.WALL STREET
There are some more bulls and fewer bears among US private investors this week, according to AAII data. Personally, I was hoping for the opposite, as more extreme bearishness makes some sort of lasting low more likely, in my book. The ideal set-up now would be a further sell-off down to the 200-day moving averages. I would certainly try and play a bounce from that level, especially if the low had been accompanied by improved daily momentum readings.
For now, my thoughts are still with shorting. The latest move upwards feels like a phoney to me and I think we will reverse very soon. The S&P looks especially ripe for shorting just now.
for analysis of the Dow, Nasdaq and S&P.**Dominic will be presenting at the London Investor Seminar on 18 June - book your place today.**
