Well, we have hit 6000! Admittedly we have since dropped away from it – so many shorters waiting at that level so a drop from there is inevitable. I was one of them and have just closed for 15 pips. Covers the hit from yesterday.
The question now is, are we going to test 6000 again and rise past it? We do have the 50 day chanel top at 6004, the 10 day channel top at 6008 to bear in mind, but do not underestimate the santa rally – it started early this year at the beginning of December and still seems to be in full swing. We have had a few short signals during this period but they havent amounted to anything – the bulls have been firmly in control and never has “buy the dips” been more apt than during December 2010. I expect a bit more bearishness come the new year, when we have poor retail figures, VAT rise, austerity measures and so on. To counter that though, the best place for returns on your money generally speaking – equities! Snap up those oil and gas suppliers in the ftse 100 – they are going to see great profits after these cold snaps!