So Im just about to be knocked out of my long trade on FRA40.
JPN225, Fra40, UK100,Ger30 are all down together. Can anyone explain the reason for the selloff and whats going on?
Hi there…
I have been short S&P500 for a few months and FTSE100 since summer of last year: the climb up has never been a matter for bullishness, so the August 2015 correction we saw could, in theory, return this month, with the month’s historic combination of lull/low activity being less able to cushion shocks and subsequent volatility.
Personally, I would be unable to explain why the last 24-48 hours have brought the pullback on equities, but if you saw it with the longer-term view of a due correction or bubble-burst scenario then you would struggle to see how anyone would comfortably take a long position at such levels, with such low VIX readings, with so much uncertainty among increasingly nervous long-only investors…
My feeling on the FTSE100 strength of recent is due to a weaker pound which increases profit margins for the international companies of that index and for that reason I’m maintaining a bullish theme. I agree that the SPX500 is due a corrective move but Im staying out of that one for the time being.
Its the European indices … I just don’t know enough about them to make more informed trading decisions. I am going to do some research and find out what drives them. This trade was based solely on technical as you can see from the higher lows, I try go with the trend but in this case I made a mistake of ‘predicting the turn’.
Today I call it the CAC40 because it just sounds appropriate after it round house ***** slapped me yesterday.
Im changing my theme to a bearish one on this index. It proved me wrong and broke my level so Ill wait for a pullback and some sort of reaction at or near the level… then Ill go short. Hammer/pinbar would be nice.
S&P500 is sliding too… Keep your wits about you…this could be a sign of something brewing…