FTSE 100 falls in reaction to Donald Trump
The FTSE 100 fell significantly during the session on Thursday, in reaction to the United States pulling out of the meeting with the North Koreans. However, I suspect that this is probably going to be a short-term negotiating tactic, and at this point I don’t see where this is anything more than a bit of a knee-jerk reaction. I think that the North Korean economy has very little to do with the global economy, so I think that the 7700-level underneath will be the initial area where we could find strong support. I’m looking for the first signs of a bounce or stability to take advantage of the FTSE 100 as it has been in a nice uptrend. Beyond that, the British pound has been a bit soft, and that should continue to be a driver for British exports.
Your capital is at risk
Ultimately, I believe that this market could find support either at the 7700 level, or perhaps even the 7550 level. I think that the longer-term market attitude will continue to of course favor the upside, and I think that we will eventually go looking towards the 8000 handle. I do not base trading based upon a few random words coming out of the US administration, especially when it comes to foreign markets such as the British stock index. I’m simply going to sit on the sidelines and wait for stability or a bounce to take advantage of what I see as value.