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OPINION

Powerful surge

Powerful surge
January 30, 2013
Powerful surge

The FTSE’s rally just won’t quit! Every day, I seem to find myself setting a new target to the upside, and then see it met or beaten. While it’s gratifying to be right, the index is yielding relatively few opportunities to join the trend. The intraday pullbacks are few and far between. I do wonder how long this can continue for, especially with the daily RSI reading now at overbought levels not seen since the go-go days of 1997! I shall consider the implications of this in this week’s main column in the magazine.

For now, I am still willing to buy the FTSE on recoveries from any intraday dips, as well as the DAX, which is much less overextended. GBPUSD could be worth a short position, meanwhile, as its comeback from its recent lows has so far has been feeble.

for analysis of the European markets.

COMMODITIES OUTLOOK

09.23

Both gold and silver gave repeat buy-signals on their swing-charts yesterday. This poses a dilemma for me. I am a precious-metals bull and I respect the swing-chart methodology. And yet, I am not particularly comfortable jumping in at the first opportunity, given just how unreliable these two commodities have been just lately. There are still more convincing trends in Brent, copper and the single currency. I am more inclined to go with these and wait for gold and silver to prove themselves, therefore.

for analysis of commodities and EURUSD.

WALL STREET OUTLOOK

13.11

There’s a whole lot of bullishness in the air right now. This week’s Investors Intelligence Advisors’ Sentiment Survey – which measures the mood of US pundits – shows 54.3% bulls and just 22.3% bears. The gap of 32% is well into exuberance territory for the third week running. The two tops in the market last year – in the spring and autumn – occurred alongside readings of 31.2% and 29.7% respectively. Still, I am not calling this rally over yet. A relatively minor intraday dip would set up another buying opportunity in my book. I continue to prefer the S&P and Dow to the forlorn looking Nasdaq 100.

for analysis of some leading equity indices.

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