Comment 

Minor retreat so far

Dominic Picarda

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.

Click here for PDF version.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Register
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now