The world’s stock markets have been weak again today and the drop was initially severe. There has now been a good bounce in the US and this has lifted all equity markets off their lows. There is due to be a turn today and there have been numerous bottom extension signals reported in today’s HEDLines, so we gave notice in that edition of our intention to buy some equities today. If you have not yet done so, we suggest starting with the S&P and bidding just under 1900 – say 1896 – for some September delivery futures. Here’s an intra-day chart:
We expect to buy more markets over the next few days, looking for a bounce back up to resistance levels, which are above 2000 in the S&P BUT this is just a ‘bounce play’ and we expect to be selling short as and when that bounce develops.
