The FTSE has been heading upwards for a week now and it's beginning to look as though it might have turned a corner.
But has it? Or is this just a fool's rally that belies the true market picture?
The FTSE reached a low of 3665 on 27th October (a level not touched since 2003) and has consistently sloped upwards. The 50 and 200 day EMA show that the market is in a mid-term downtrend so should we consider going long (buy) on the FTSE?
Well, my opinion is that the FTSE is still going to be weighed down by the continued uncertainty in the banking sector. Commodities in general have also taken a tumble over the last couple of months and this will also keep the FTSE from gaining any decent upwards momentum. I think it's highly unlikely that we'll see a golden cross on the FTSE anytime within the next quarter.
As for my trading: I'm still out of the markets at the moment because of the uncertain outlook but it would definitely be nice to see the markets going in some kind of direction, even if it's only sideways.
I think we are going to see one or two serious knocks to the market before it starts a serious recovery.
At the moment I'm considering just buying traditional stocks...
There is no real support for the growth so it cannot last. It will definately drop it is just a matter of how many times........
dave
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