My pick: Short FTSE at 5,500
Expertise: Technical analysis
Average time frame of trades: 5-10 days
Explanation: Last week’s recommendation – short FTSE – has worked and we are now fast approaching our objective. But we also realise that markets have been quite choppy, and with the index testing key rising trend-line support off of the November lows of 5,335, we have gone ahead and booked profit on half our position. This has allowed us to realise some profit. We have also moved our stop to break even at 5,500 on the other half in order to eliminate risk.
My picks: Remain short Nasdaq 100 at 1,840, short Nikkei 225 at 10,675, book oil profits
Expertise: Combining fundamental and technical analysis with risk management
Average time frame of trades: 1 day to 1 week
Explanation: There was a critical swing in risk appetite this past week and markets moved lower together. With this aggressive move, I have booked profit on my oil shorts and taken profit on the first half of my Nasdaq 100 shorts. I believe that risk appetite will continue to be poor and will short Japan’s Nikkei 225 index at 10,675.
My pick: Stay short crude oil
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week to 6 months
Explanation: Last week I sold crude after the weekly chart showed a bearish engulfing candlestick pattern below resistance at the top of a rising wedge formation. Prices have since moved lower to meet support at $74.41, the bottom of a minor falling channel. An upswing to the formation’s top ($76.91) is possible from here, but overall positioning remains bearish and I will stay short and target $66.10. I will activate a stop-loss on a daily close above $83.95.