Petros Steriotis: Beware of heights – We are not going against the trend, but we are also mindful of the “overbought” gauges-warners.
Good evening MM friends,
- The General Index is doing well, at two-month highs, something that we believe is “owed” exclusively to the Foreign Stock Exchanges – so that we have no illusions.
It was only a matter of time before the infamous (and proud) autonomy of the Greek market from Foreign came to an end.
The correlation (English correlation) of the General with the Dow etc. is starting to remind of the old days and seeing what happens “across the Atlantic” after the closing of the Greek session and until 11 pm we have a first picture of what to expect here.
- If the Outs sneeze, we don’t foresee a simple cold for DG, but much more.
Of course, the next meetings are critical and we as “diagrammers” will point out the meeting of the DG with the simple moving average of the last 200 meetings (see diagram).
The average in question theoretically separates a bull from a bear market, at least in the eyes of several institutions that want to have the “big picture” without too much.
Given the “incorrigible” rally of the last 6 weeks or so we will reiterate:
Beware of heights. We do not go against the trend, but we also keep in mind the “overbought” gauges-warners.
Sincerely and disclaimer,
Petros Steriotis
Πέτρος Στεριώτης (Χρηματιστής) Petros Steriotis 