Charts from Bloomberg
The market gave us a 1000 point s in just 3 days and has retraced almost all of it on the back of strong US economic data and Dubai. This in turn has strengthened the USD and pulled our market down with it.
Will it go down more? I believe there should be more upside into December running up the rising wedge BUT the UK's FTSE 100 looks like it may have broken down below its rising wedge. We will need to wait and see this week if this is a false break or a genuine turn for the worst in the UK and hence us as well.
The real question will be what happens to the USD! Call that right and there will be a lot of loot in it for you. If Dubai crumbles, it might have adverse effects for risk appetite in the emerging markets! On the contranry, the USD weakiening again will drive our heavy weights north (AGL, BIL).
I truly can't say at this point and advise to sit this week out until we know more. Remember no trading is sometimes the best trading!
The market gave us a 1000 point s in just 3 days and has retraced almost all of it on the back of strong US economic data and Dubai. This in turn has strengthened the USD and pulled our market down with it.
Will it go down more? I believe there should be more upside into December running up the rising wedge BUT the UK's FTSE 100 looks like it may have broken down below its rising wedge. We will need to wait and see this week if this is a false break or a genuine turn for the worst in the UK and hence us as well.
The real question will be what happens to the USD! Call that right and there will be a lot of loot in it for you. If Dubai crumbles, it might have adverse effects for risk appetite in the emerging markets! On the contranry, the USD weakiening again will drive our heavy weights north (AGL, BIL).
I truly can't say at this point and advise to sit this week out until we know more. Remember no trading is sometimes the best trading!
No comments:
Post a Comment