FRA40 trade ideas
The cronies are shortsqueezing everything against the smart onesWhen their game ends, we shall see what happens.
Will France 40 drop?French economy is getting worse and yet its stocks have been rising. Will reality set in soon?
Week 46 - Trade 3: France40 ShortA bit oversold and should be aligble for retracement. Testing short to around 5800.
Posible venta FRA40 Relacion 2:1Confirmaciones Ruptura TL alcista, divergencia, zona de cambio, Fibonacci, Pullback..
Current euphoria based on higher risk premium ... Patrick Artus affirms that European Markets should maybe be priced 25% higher from current levels based on a 3% risk premium differential.
US markets are mostly inflated by share buybacks because this is how the stockholders are remunerated, whereas in France for instance, dividends are on the order of 3.5%.
Fractal wedge vs PullbackThe weekly trend is down. Pullback or not, it's easier to short with a closer stop.
MIF2: Fixing - High volume anomaly and manipulable dry market This is actually a concern. 41% of daily volumes take place toward the last 5 minutes of the trading day. This dries up liquidity and create weird patterns during the day. Price discovery is less efficient in many cases in my opinion. Algos follow last minute execution. Costs are supposedly reduced thanks to some tweaks but this probably leads to some imbalance in the markets.
This game should cease when the situation si reversed.
Document by the AMF (French "SEC") about this matter in French:
www.amf-france.org
Short the 78.60% of the fractal pattern target - Island ReversalThis has been a new norm for momentum targets and some patterns. Flags keep overextending all the time though, so pay attention to weird handle patterns such as in overextended Cup and Handles, and potential Inverted Head and Shoulders. When this game of greed and short squeeze ceases, QE or not it will be down extremely atrociously in my humble opinion.
