My pick: Short FTSE at 5,725
Expertise: Technical analysis
Average time frame of trades: 5-10 days
We managed to exit our long position from a couple of weeks back for a profit and recommended reversing and establishing a fresh short last week. The short trade is now in the money and looks like it could start to accelerate towards our objective of 5,600 over the coming sessions. A series of consecutive weekly higher lows has been broken and this should now suggest that the market is in the process of carving out some form of a top. Place a revised stop at 5,810.
My pick: Short Dow below 10,900
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day-1 week
There is an opportunity to invest in the consistent advance in risk appetite that is feeding equities, commodities and high-yielding currencies. However, given the maturity of this trend, upside progress is limited and slow. In contrast, a reversal from overvalued levels can be severe and have plenty of room to move. I will set an entry with a trend break below 10,950 on the Dow Jones with a stop of 11,195 and have a target of 10,705.
My pick: Short crude oil
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week-6 months
Oil prices have rebounded from the $81.45 level to retest support-turned-resistance near $85 at the bottom of a bearish rising wedge formation that had been broken to the downside on 16 April. This area corresponds with a falling trend line established from the swing high on 6 April. I will look for confirmation on a bearish close of the current and the following daily candle to go short, targeting below $80 for a move to the bottom of the large rising channel set from mid-July 2009, now at $76.06.