[private]Mike van Dulken ‏@Accendo_Mike
Italian Election Impasse Sends Jitters Across The Markets; Instability Leading To Sell Off http://www.huffingtonpost.co.uk/2013/02/26/italian-election-impasse-_n_2764204.html …

Although all Eurozone sourced shocks of recent years have proved to be buy opportunities for the stock market, most traders do not find it easy to get in the mood for bargain hunting when shares a taking a lunge to the downside. As far as the latest Italian crisis is concerned cynics may argue that even when a Government is eventually elected we may not see conditions become significantly more stable than they are at the moment.

Citywire ‏@Citywire
‘Expect much more volatility in Europe’, says PIMCO’s El-Erian http://bit.ly/Wottzy

While the price action of the financial markets so far this week may suggest that Pimco is providing something of a lagging comment, the biggest bond trading group in the world is not to be quibbled with. This is particularly the case given the way that after an extended period of low volatility / relatively flat markets, the past few days have seen major upheavals.

Spreadex ‏@spreadexfins
#Tesco UK grocery Mkt share falls to 29.7% whilst SBRY regained the crown as the only supermarket that gained mkt sh. LM

Having taken the horsemeat crisis square in the face it is perhaps not surprising that the latest data shows Tesco’s (TSCO) market share falling below 30% and the supermarket losing out to arch rival Sainsbury (SBRY). From a charting perspective the failure of Tesco shares to recover last year’s gap down and 380p could be a sign of a new leg to the downside for the shares of the UK’s number grocer.

Hugh Pym ‏@BBCHughPym
Retweeted by @Brenda Kelly_IG
Tucker says negative interest rates would be “an extraordinary thing to do” – but could be considered

It would appear that the nightmare scenario has been stared at for Sterling bulls, and actually passed off without too much of a shock in price action terms: negative interest rates. This is particularly the case that effectively this is just what we have been living with over the past few years given the base rate of 0.5% and inflation well above this level.

NTMarkets ‏@NTMarketscom
EUR/USD “Some sort of snapback may be in order. Thereafter, I call for $1.2993” FT’s Dominic Picarda #eurusd – http://tinyurl.com/b783l9w $

So far bulls of the Euro have been saved from any sustained decline back below $1.30, although it would appear that given how negative sentiment is towards the cross a sub $1.30 handle here looks to be on the cards, even if this proves to be the bottom fishing zone for this market.

Ashraf Laidi ‏@alaidi
$EURUSD net longs are 10x below record high while $GBPUSD net shorts are less than 4x off their highs http://www.cityindex.co.uk/market-analysis/files/2013/02/EURGBP-Feb-25-2013.jpg … #forex

Statistics such as net long / short positions tend to be only most relevant to traders whose positions they agree with.  Nevertheless, it would appear that while the market is heavily short of Cable, it is not grossly so. On such logic it could be that the UK currency could “celebrate” today’s dead cross sell signal between the 50 / 200 day moving averages with at least a retest of the $1.50 even zone over the next few days.[/private]

Zak Mir

Zak Mir, Senior Analyst, Institute of Trading And Portfolio Management For more of Zak's technical analysis sign up to Zaks-TA.com by clicking here For AIM stocks only sign up to Zak's new premium blog AIM Stocks Charting Read Zak’s Amazon eBook bestsellers, Lessons From The Financial Markets For 2013, and 101 Charts For Trading Success by clicking here Twitter: @zakmir Email: zakmir@instutrade.com

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