I warned yesterday morning that the early signs of life in the DAX and FTSE risked being yet another false dawn and so it proved. The indices slumped lower towards some of my more bearish targets yesterday and there’s no sign that this process is about to end immediately. Unlike the US indices, the DAX and FTSE have yet to become truly oversold on their daily charts. As such, I am only really interested in shorting the end of intraday bounces for the moment.
for analysis of some European markets.COMMODITIES OUTLOOK
10.46
There is a cycle in the price of gold of around 17 weeks’ duration. This means that highs and lows are especially likely at intervals of 8.5 weeks. The next such turning-point is due on 7 December. As of now, it is not entirely obvious whether we are facing a top or a bottom around this date. If it’s a low, I would be more willing to buy than I would be to short if it were a high. For now, both gold and silver are defying the sell-off in risky assets more generally. Silver looks the better buying candidate, but I am not that enthused about either really.
WALL STREET OUTLOOK
13.56
There is a cycle in the price of gold of around 17 weeks’ duration. This means that highs and lows are especially likely at intervals of 8.5 weeks. The next such turning-point is due on 7 December. As of now, it is not entirely obvious whether we are facing a top or a bottom around this date. If it’s a low, I would be more willing to buy than I would be to short if it were a high. For now, both gold and silver are defying the sell-off in risky assets more generally. Silver looks the better buying candidate, but I am not that enthused about either really.
for analysis of the Wall Street indices.
