There’s a lot of scepticism right now about the outlook for European stocks. Retail traders are heavily positioned against the FTSE 100 and the DAX in the expectation of falls. The only falls I am really looking for, however, are very minor ones indeed, an intraday pullback to one of the fourhourly EMAs and no more. This would be desirable in order to unwind the rather stretched fourhourly momentum readings, and thereby create scope for further gains.

As well as longs in FTSE and DAX, I seek to buy EURGBP, but short EURUSD and GBPUSD.

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