My pick: Buy the FTSE 100 at 5,700
Expertise: Technical analysis
Average time frame of trades: 5-10 days
With the market now consolidating above 5,500 – which also coincides with the 61.8 per cent Fibonacci retracement off of the 2007-2009 extreme high-lows, we can not rule out the potential for additional upside to test 6,000 over the coming weeks. As such, look to buy in anticipation of a fresh push higher towards the next key psychological barrier. Buy at 5,700 for a 6,000 objective and place your stop at 5,550.
My pick: Short the Dow below 10,800
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day–1 week
Just a casual look at the Dow’s rally since the beginning of February should tell us that something is wrong. Speculative markets should not support such a consistent trend. And given the outlook for growth and returns, such 18-month highs are excessive. Waiting for a reversal to come to me, I will look for a short on the Dow’s drop below 10,800 (breaking trend) with a stop set at 10,975 and 10,500 first target.
My pick: Short gold (pending)
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week – 6 months
Gold prices broke above the top of a falling channel set from the swing high in early March, finding resistance at $1,128.91. The upswing looks to have been motivated by repositioning ahead of the March non-farm payrolls report, which was released on Good Friday. I will look for confirmation of a break below $1,113.55 to enter short, initially targeting $1,088.33. Short gold below $1,113.55, target on daily close above wick high of suport-breaking candle.