Leading on from my previous post where I got blew completely out of the water by the emergence of Omicron I am looking for a Reentry point for a climb back up. I should be clear that for the past weeks I have been shorting the Major indices to hedge/recoup my losses from the recent pullback. My emphasis is on the the word pullback.
I feel we are now seeing some good volume and stability about key levels. The US500 is finding traction around the 4500 level at present and the UK 100 is looking for buyers at 7100. On top of that the D200 EMA sits 60-70 points below and it looks like the big fish are seeing this as a huge buy opportunity. I still maintain that the FTSE is undervalued but the Fear factor is dominant at present. I am maintaing a position currently just above the D200 EMA and if we see a close around the 7100 level I will take a further position in anticipation of a possible bounce this week.
My rationale for the bounce is that I anticipate emerging data regarding the omicron variant over the weekend and my first impression are that this is potentially a high transmission/moderate pathogenicity variant at present. I admit this is a bit of a gamble and there is nothing more irrational than the financial markets but my bias at present is that this is pullback and a buying opportunity. God bless hedging....
I feel we are now seeing some good volume and stability about key levels. The US500 is finding traction around the 4500 level at present and the UK 100 is looking for buyers at 7100. On top of that the D200 EMA sits 60-70 points below and it looks like the big fish are seeing this as a huge buy opportunity. I still maintain that the FTSE is undervalued but the Fear factor is dominant at present. I am maintaing a position currently just above the D200 EMA and if we see a close around the 7100 level I will take a further position in anticipation of a possible bounce this week.
My rationale for the bounce is that I anticipate emerging data regarding the omicron variant over the weekend and my first impression are that this is potentially a high transmission/moderate pathogenicity variant at present. I admit this is a bit of a gamble and there is nothing more irrational than the financial markets but my bias at present is that this is pullback and a buying opportunity. God bless hedging....
