My pick: Buy FTSE 100 at 5,000
Expertise: Technical analysis
Average time frame of trades: 5-10 days
The market has come under intense pressure in recent days and the FTSE has fallen just shy of the previous 2010 lows of 5,038. At this point we would not rule out the potential for a break to fresh yearly lows and a test of psychological barriers at 5,000. But the index is beginning to look over-sold, and I would look for opportunities to buy once 5,000 is tested. Buy the FTSE 100 at 5,000 for a 5,400 objective with a stop at 4,850.
My pick: Short silver at $18.75
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day-1 week
My short Dow trade worked more quickly than I had expected, so much so that I have taken both the first and second target levels within the last week. With the markets having moved so aggressively, it is difficult not to land on a mature risk aversion trend. Silver has temporarily followed gold, which has moved higher as investors flee risky assets; but fundamentally silver is weaker than gold. I am looking to short silver at $18.75 with a stop at $19.65 and $17.85 for a first target.
My pick: Short oil at $76.29
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week-6 months
Crude oil prices have broken below their support level at the bottom of a rising channel that was established in mid-July 2009. This opens the door for a move to lows of $71.20 that were last reached in February, and I will look for this level as my initial target. However, I will opt not to set a firm take-profit order, looking to revise the objective lower if the initial decline plays out. An initial stop-loss will be activated on a daily close above $78.19, which is the weekly high reached one week ago.