Friday, November 09, 2012

FTSE and DAX trying to follow the US

These charts again show why I do not trade indices (due to their inherent volatility), but simply use them to determine my directional bias when selecting individual stocks to trade. Both FTSE and the German DAX have moved from near new-highs down towards new lows in a matter of a few days. As previously mentioned, the US indices, gold and silver, oil and EUR/USD are already on a short signal - these two indices have stayed stronger for longer but are now falling into line.

I already hold more short than long positions, and if these indices continue to fall then that will be my directional bias until the trend in the indices change.

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