Equity indices rally on Tuesday but bulls need to be cautious

Συναλλαγές αναδυόμενων τάσεων by Traders Magazine
September 8, 2015
Το μυστικό για να κερδίζεις στο ΧΑ είναι….
September 8, 2015

Equity indices in Europe rally on Tuesday with gains near 2%. US index futures are positive near 2% as well after yesterday’s Holiday. The entire rise from the August lows in all major indices is not impulsive. The form of the rise is a complex one and I believe we are in a wave 4 correction as we mainly move sideways in triangle patterns.

DJIA

DOW4H

SPX

SPX4H

DAX

dax

IBEX

IBEX

FTSE100

FTSE100

If I had long exposure I would raise my stops to yesterday lows. We should not forget how the increased volatility can work both bearish and bullish, so despite the increased bullishness this morning I want to just note that it will not be difficult for this rally to be faded. If however there is a follow through to this bullishness, we should be heading towards the multi month break down levels like 17k for the DJIA and 2010-2040 for SPX.

SPXD

 

 

dowdaily

My main view is that we are not done with the downside yet. I have started opening short equity positions from around current levels in US stocks like NKE, PYPL, CAT, LNKD, BA, AAPL,JPM, as I have mentioned in my twitter and stocktwits  accounts (@alexanderyf in twitter – @trading2day in Stocktwits).

I have also opened a small short position in DJIA SPX DAX and IBEX  and will look to add on any reversal sign. From month to month I will be posting my trades and my performance from the trades that I announce to my twitter subscribers.

I’m still however not convinced that the bull market is over and that we are at the start of a new bear market. I just believe we are making a big correction similar to the one from last October or similar to the one from 2011. For more detailed analysis and if you want  to see my trades in real-time being announced you can subscribe for  only 34.95$ per month.

Thank you for taking your time to read my thoughts.

 

 

 

 

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.