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.
- ftse trends
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!
Hi Nick, I certainly never thought we’d get this high and I agree with you that next year will certainly hold some surprises. I did some analysis on the FTSE since March lows of ’09 (Festive Greetings and a Happy New Year by the way!) and played with the fibonacci retracements and projections. Take a look at http://www.whichwaynext.com (finally!) and I believe we will get a rise in the next couple of weeks to 6069 and that could well mark the top. All my own work I might add, I’ve sacked the last Elliotician after his useless analysis.
Hi John
Site is looking good now. 6069 – seems a good a point as any! There hasn’t been much respect shown for any of the supposed turning points recently has there. The bears will probably come out of hibernation in January. Even the EWT experts got it wrong recently! Still if it was easy everyone would do it, get it right and make millions!
Hope your new EWT person has more luck that the last one
Hope you have a good festive break and New Year – catch up in 2011!