Just the man for the moment. Rather than throw his hands up and shout things like ‘unprecedented, uncharted and unfair’ as so many in the media do when confronted by the unusual, veteran Zak Mir of ZaksTradersCafe chose to cover British-related markets on this important day as we move towards Brexit.
Kicking the ball into play, he starts off with a daily chart of the FTSE 100 index noting that trying to link charts and political news ‘’might drive you mad’’. As a good technical analyst he sticks to the chart and the indicators he likes: RSI and MACD crossover – which interestingly he thinks is a leading indicator. He’s obviously got a contrarian bent reminding us to ‘’be greedy when others are fearful’’. He also explains clearly what are bull and bear traps, and how this index is prone to them.
He uses RSI in a non-conventional way, staying long while it has a reading of 50 or above, short when below 50. Warning that we must use this as just ‘’one piece of the jigsaw, not an idiot camera’’ he turns to cable, where he suggests anything below $1.2000 is likely to be a bear trap – bar some cataclysmic news – because ‘’markets love going against the grain’’.
Finally euro/sterling, where interestingly he uses the 100 and 200-day simple moving averages for golden and death crosses. Unconventional to the end.
To view, click here.