Price on the chart has been hovering between the 50 and 20 dma which seems to have flatlined, however, other indicators suggest that the next move may be up again. MACD is still above the zero line and after a period of decline is now heading up again. No green bars yet but the crossover is almost ready to go. This is supported by the Parabolic SAR indicator going positive with the first green dot on the chart under today's move up. That needs to hold, but if it does we should be going higher.
I do wonder if we might be heading for an ideal sell in May scenario this year?
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| FTSE100 - Daily |
Its been quite a challenge the past few months to basically do nothing apart from remove leverage. For the first time in many years the leverage is almost 1. Recently I have even been looking at a few short positions but its more expensive than going long and probably wont do this unless the SP500 gets above 1600.
ReplyDeleteHoping for a decent pullback of ca 10% to go long again but if it does not happen will have to keep concentrating on doing nothing.
Yes, the dips continue to be bought, but as the market rises the chance of a bigger fall at some stage must increase. Sooner or later a correction must happen which would be healthy for the market. May is traditionally a time when the market can show weakness although low volumes can often lead to greater volatility. It might be then that a pullback of 10% or so happens, although again it has to be said that most of the bad news type stories that bears point to as an indicator for big falls are not having much effect at the moment.
DeleteSentiment remains bullish, pricing in eventual recovery and better days ahead.