After another brief hiatus, here at the flatbook we are back. Posting for posting's sake is not in our nature and it was our feeling that over the course of November, market conditions yielded very few high probability setups.
Thanksgiving week saw an increase in volatility on light volume as was to be expected. As panic on the back of an allegedly exaggerated Dubai World crisis fades to black, we enter a week headlined by the ECB rate decision on Thursday and US NFP data on Friday, both of which have the potential to founder market gains. Technically we find ourself ensconced on tested descending resistance (see below). Notwithstanding indicators appearing decidedly indecisive, we have executed a sizeable, yet somewheat speculative short position at 1106 with stops above recent highs. Let the flatbook go on the record and say that we expect a healthy pullback into the Christmas period as traders unwind their books and take some chips off the table. Indeed this is a critical juncture for global markets, and our direction over the next couple of weeks may provide insight as to whether we are in a genuine bull market or a bear market rally.
Safe Trading all!
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