Look back over the past, with its changing empires that rose and fell, and you can foresee the future too.

— Marcus Aurelius


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Wednesday, September 12, 2012

Summer ended..

Click prices for links to prior posts

Copper now at 371 
DAX 7350
FTSE 5800
Gold 1740
Silver 33.6

Where now?
DAX weekly

DAX approaching strong overhead and downtrend resistance.  Could be we get a brief push above, before a correction sets in.  However unless the trend changes that will be all it is .. a correction.

FTSE weekly

Also approaching resistance

Needs to break and hold above 5810, for test of 5870/5890
Formidable resistance around 5900.

IF the market can break higher obvious target is 6000

DAX/FTSE spread chart

When there is an uptrend can see that DAX outperforms FTSE.

1, FTSE is quite heavily weighted with defensive stocks
2, DAX has only 30 stocks compared to FTSE 100, and many are cyclical risk on stocks.

However sometimes the spread widens too much.  For a relatively risk free trade sell DAX buy FTSE at these levels, possibly 200points, before uptrend resumes

When a prolonged market down turn occurs the tables are turned with the FTSE outperforming the DAX, in which case a spread trade can be held for longer

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