Just watching the FTSE take a 2% dive to 5495 and I should have been in there but should have, could have and didn’t. You can really beat yourself up over silly trades you either made or didn’t make but the entry point is gone and now its time to refocus.

I’m not too sure how to play this market. Everyone is looking for the big “capitulation” play that will cleanse the market before the next rally. Unfortunately the volume isn’t there and the VIX index is quite subdued. This is worrying because we could bounce along 5500 for a while until the pressure builds and bad news prevails taking us to 5300 or lower. I have seen some really over the top forecasts for the FTSE to hit 3000. I think that’s nonsense but 4900 or so could be possible. Then again we are living in strange times and the rules are being written as we go along so anything is possible.

That still doesn’t help my play. I think we are trading in a range and the ECB rates decision could have something to do with it this Thursday. It being a short week as the 4th of July is on Friday could also make things interesting. I’m thinking of a 3 Euro short but at 5600 or above 5550 before Thursday if I get the chance.

Otherwise I may have to incrementally scale into a buy position below 5500 as the market drops. For the moment its still wait and see.

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