Wednesday, 1 October 2014

Down we go

The instinct which told me to pull out seems be the right one. I sold out of my remaining US shares today and am only keeping the rump of my UK ones because, for the moment, they seem to be holding up in the face of a dreadful FTSE performance.

The chart tells it all. The slide has taken it to withing 20 points of the previous low and it looks very ugly.

The Dow is making a second attempt to break through a two year old support line. It's a time to hold back and await developments. It is unclear what has spooked the market so it could still go either way. That last high should have been higher if the market was still on a roll. Time will tell. In the mean time it's best to be sitting on the sidelines.

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