Tuesday, December 11, 2012

The rally keeps on going

The charts below show that both the FTSE and DAX have now made marginal new highs. The US indices somewhat lag (shown the S&P below) but have also made new highs off of the November lows. In all cases there has been a sustained rally over the last month or so, with very few 'down' days in that period.

The charts also show the increased volatility as a result of this price action, along with the 'V' shaped reversal at the November lows which by their very nature trend following systems struggle with.

As I showed in this post over the weekend, when taking a longer term view there has been very few opportunities over the last couple of years for a pronounced trend in the indices to develop. Here's hoping for at least one decent trend in 2013.

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