My pick: Buy the FTSE 100 at 4,900
Expertise: Technical analysis
Average time frame of trades: 5-10 days
Markets have come under intense selling pressure in recent weeks as investors fretted over the outlook for the global economy. The FTSE looks like it could retest recent lows of 4,900 in the near future. However, since markets have sold off so steeply since March, any setbacks towards 4,900 should be limited, and there is a high risk of another bounce to 5,000. Buy the FTSE 100 at 4,900 for a 5,400 objective with a stop at 4,750.
My pick: Hold short Ibex from 9,550 and short silver below $17.25
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day-1 week
Conditions in the markets may have improved as investors’ confidence picked up but the markets are still at risk from bouts of volatility as problems persist in the global economy. I will stick with my Ibex short position at 9,550 and keep my stop loss wide. From a technical standpoint, shorting silver is also looking good. A head-and-shoulders pattern could see a good bear break below $17.25. I will keep my targets and stops open for now.
My pick: Remain short crude oil
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week-6 months
I sold crude back in May at $76.29, as prices broke a key support level that was established in mid-July 2009. I trailed my stop-loss to break-even. Right now prices seem to have consolidated at $69.50. Crude’s close correlation to overall risk sentiment
suggests there could be further losses to come for the oil price after a disappointing US jobs report for May. I will remain short, with a stop-loss triggered on a daily close above $76.29.