Saturday, June 30, 2012

Charts of the indices

At these charts show, the serious move up on the news from the EU summit yesterday has reached the point of giving a long signal on both the S&P and the DAX. The FTSE is slightly weaker at the moment, but these charts appear to now also show that a higher low is in place, and the long signal would automatically create a higher high as well. Against this, volatility remains high and the uncertain economic situation will remain for some time. There are no guarantees that these signals will lead to a nice uptrend. As always, risk control remains paramount and rather than plunge in to too many positions, too quickly, I will be limiting myself to one or two new trades per day as the trend (hopefully) develops.

As I've mentioned on numerous occasions, the charts of the indices simply determine the bias I look for on my stock scans and positions, and even then I would still have one or two going counter trend to the general market, partly as a hedge, and partly as any short signals generated in an uptrend could signify a high degree of relative weakness in those stocks.

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