hereward the wake
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Dom today
Home > Comment > The Trader
More pain in store for the bears
DAX 30
FTSE 100
S&P 500
BRITISH POUND/US DOLLAR
EURO/US DOLLAR
GOLD
The equity indices continue to press higher, just as I have been forecasting they would. There was never any serious evidence that they had formed a major high, less still confirmation from a major price reversal. It is folly to fight a strong uptrend, especially one that is effectively still underwritten by the Federal Reserve and Bank of Japan. I daresay we will have a more serious correction at some point this year. I shall worry about that once it gets underway. For now, I am still seeking opportunities in both equities and in gold.
Following its rampage higher, the DAX has traded gently sideways. This is a precursor to a return to the high at 9794, as I see it. The only drawback is the ongoing fourhourly RSI reading.
DAY: I’ll buy as the DAX rallies back above through its 13-fourhourly EMA.
POSITION: Stay long or get long on a bounce off the 13-fourhourly EMA.
My call yesterday was to buy a bounce off the 21-fourhourly EMA in advance of gains to 6745. And that’s exactly what’s happened. I’m now looking for 6822.
DAY: I’d buy another bounce off the 13-fourhourly EMA.
POSITION: Stay long or buy a further bounce off the 13-fourhourly EM
If the S&P is topping, it’s a very funny-looking top. I see it as consolidating ahead of a move to and through its all-time highs at 1851. The state of the daily chart leads me to think that won’t be the end of it, either.
DAY: I’d buy a rally back through the 13-fourhourly EMA.
POSITION: I’d buy a bounce off the 13-fourhourly EMA.
BRITISH POUND/US DOLLAR
Yesterday: “I think we can get to $1.6670 although a dip may be needed first… Take profits for now and await a fresh bounce from around the 13-fourhourly EMA.” GBPUSD has played out as I thought it would. I now expect gains towards $1.6877.
DAY: I’m happy buying a rally from here.
POSITION: Nothing for now.
EURO/US DOLLAR
EURUSD’s chart is less inspiring than GBPUSD’s and indeed than most of the indices. That said, I still see the current period of sideways action giving way to a burst up towards $1.3751 and beyond.
DAY: Stay long or buy a rally from here.
POSITION: Nothing for now.
GOLD
Yesterday: “Gold is now very overbought on its fourhourly timeframe, so I’d await a dip before trying to get long again.” And that’s exactly what’s happened, with the yellow metal pulling back to the 13-fourhourly EMA. I am looking for $1329.22.
DAY: I’d buy another rally back through the 13-fourhourly EMA.
POSITION: None.
Home > Comment > The Trader
More pain in store for the bears
DAX 30
FTSE 100
S&P 500
BRITISH POUND/US DOLLAR
EURO/US DOLLAR
GOLD
The equity indices continue to press higher, just as I have been forecasting they would. There was never any serious evidence that they had formed a major high, less still confirmation from a major price reversal. It is folly to fight a strong uptrend, especially one that is effectively still underwritten by the Federal Reserve and Bank of Japan. I daresay we will have a more serious correction at some point this year. I shall worry about that once it gets underway. For now, I am still seeking opportunities in both equities and in gold.
Following its rampage higher, the DAX has traded gently sideways. This is a precursor to a return to the high at 9794, as I see it. The only drawback is the ongoing fourhourly RSI reading.
DAY: I’ll buy as the DAX rallies back above through its 13-fourhourly EMA.
POSITION: Stay long or get long on a bounce off the 13-fourhourly EMA.
My call yesterday was to buy a bounce off the 21-fourhourly EMA in advance of gains to 6745. And that’s exactly what’s happened. I’m now looking for 6822.
DAY: I’d buy another bounce off the 13-fourhourly EMA.
POSITION: Stay long or buy a further bounce off the 13-fourhourly EM
If the S&P is topping, it’s a very funny-looking top. I see it as consolidating ahead of a move to and through its all-time highs at 1851. The state of the daily chart leads me to think that won’t be the end of it, either.
DAY: I’d buy a rally back through the 13-fourhourly EMA.
POSITION: I’d buy a bounce off the 13-fourhourly EMA.
BRITISH POUND/US DOLLAR
Yesterday: “I think we can get to $1.6670 although a dip may be needed first… Take profits for now and await a fresh bounce from around the 13-fourhourly EMA.” GBPUSD has played out as I thought it would. I now expect gains towards $1.6877.
DAY: I’m happy buying a rally from here.
POSITION: Nothing for now.
EURO/US DOLLAR
EURUSD’s chart is less inspiring than GBPUSD’s and indeed than most of the indices. That said, I still see the current period of sideways action giving way to a burst up towards $1.3751 and beyond.
DAY: Stay long or buy a rally from here.
POSITION: Nothing for now.
GOLD
Yesterday: “Gold is now very overbought on its fourhourly timeframe, so I’d await a dip before trying to get long again.” And that’s exactly what’s happened, with the yellow metal pulling back to the 13-fourhourly EMA. I am looking for $1329.22.
DAY: I’d buy another rally back through the 13-fourhourly EMA.
POSITION: None.
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