Is it time to sell the shares you bought on the March lows?


Until the primary market trend returns to bullish, the question we should often ask ourselves is the following: is it time to sell the shares bought on the lows of March?

We will never tire of saying it and writing it, because we are strong on the historical experiences, that is, until the markets close to the following levels in monthly closing

Dax Future


Eurostoxx Future


Ftse Mib future


S&P 500


the fall cannot be set aside and at any crossroads and / or resistance it may reappear with renewed vigor. Another aspect that always derives from the study of the historical series is that the reductions are formed and “accomplished” by drawing an ABC, that is, a first leg down, subsequent rebound and final lunge. For the time being, an AB movement seems to have formed from the highs of February, followed by the final C.

Also this time there will be C?

Is it time to sell the shares bought on the March lows?

Between yesterday and today we have reached levels that represent important resistance as per Fibonacci calculations. Could a new wave of sales start from these levels?

What are the alert levels? The start of a new significant bearish leg would only occur with daily and then weekly closings below the following levels*:

Dax Future


Eurostoxx Future


Ftse Mib future


S&P 500


For the moment, therefore, the bullish positions open between 16 and 23 March can continue to be maintained as indicated in these pages. We continue to point out that the turning point that occurred in March was an extraordinary opportunity for the purchase of 36/60 months of global stock exchanges diversified according to GDP (50% America, 30% Europe, 20% Asia and emerging). When the equity markets from 1898 to today have fallen by more than 35% from their maximums, it took between 36 and 60 months to return to their pre-crisis highs.

What are the levels to be monitored between today and tomorrow 28 May?

Only daily closures below the following levels should start to worry and could lead to media testing* indicated above

Dax Future


Eurostoxx Future


Ftse Mib future


S&P 500


As usual we will proceed in steps.

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