DAX is the only index that have closed below earlier lows. SWED took a new intraday low but closed above earlier lows. The rest of the indexes look the same. They have a bit more to fall to look dangerous so far. They can get a double bottom or move up from here. However all MA:s from 2 hour chart to weekly charts points down, that is the trend is down and the upside is not likely.
Investors should still not buy but wait. Traders should take short term positions and short the indexes.
There are no fundamental things that are good enough to change the trend. I expect more gloomy news next week. Since every one seems to know about a coming long recession the buyers are few and if the potential sellers nervs get frayed again sharp drop could easily happen. The one week correction that happened was very weak and it tells me there are not many bulls out there.
My warning signal for a break on downside June 6 has been taken seriously according to emails especially when the same thing happened in 2007 and 2008. Only during three weeks in August has
DAX lost 27 percent. MIB 24, SWED 22, CAC and IBEX 20, FTSE 19, SP500 15 and the Dow 12 percent.
Gold has taken a new high telling me that problems in the stock markets are not over and the same goes for the dollar. The Swiss currency has disconnected from the gold since three weeks because of political resons in Switzerland.
Oil has made a rally and I think now is a good time to take long term short positions. The weekly MA:s have a clear sellsignal. It might take a little time before the big drop comes.
For new readers my email address is olle.ahlmark@gmail.com.
Investors should still not buy but wait. Traders should take short term positions and short the indexes.
There are no fundamental things that are good enough to change the trend. I expect more gloomy news next week. Since every one seems to know about a coming long recession the buyers are few and if the potential sellers nervs get frayed again sharp drop could easily happen. The one week correction that happened was very weak and it tells me there are not many bulls out there.
My warning signal for a break on downside June 6 has been taken seriously according to emails especially when the same thing happened in 2007 and 2008. Only during three weeks in August has
DAX lost 27 percent. MIB 24, SWED 22, CAC and IBEX 20, FTSE 19, SP500 15 and the Dow 12 percent.
Gold has taken a new high telling me that problems in the stock markets are not over and the same goes for the dollar. The Swiss currency has disconnected from the gold since three weeks because of political resons in Switzerland.
Oil has made a rally and I think now is a good time to take long term short positions. The weekly MA:s have a clear sellsignal. It might take a little time before the big drop comes.
For new readers my email address is olle.ahlmark@gmail.com.
No comments:
Post a Comment