FxWirePro Call Review: Add additional short positions to our IBEX35 bear call

Back in February this year, in an article named, “FxWirePro: Sell IBEX35 targeting 7800 area”, available at https://www.econotimes.com/FxWirePro-Sell-IBEX35-targeting-7800-area-1158558 , we suggested, “We at FxWirePro believe that the global stock markets selloff that rattled investors’ nerves for two weeks might not be over, at least for the European stock markets. While the U.S. stock markets can enjoy the support of recently passed tax cuts and reforms, the European bourses lack such.” We also highlighted our bearish calls on several European indices, namely Eurostoxx50, DAX, FTSE100, and CAC40 and we suggested to our readers,

“Our calculations suggest that the benchmark, which is currently trading at 9860 (ESP35) is likely to decline towards 7800 area. The stop loss for this trade should be maintained at 10680, which is 820 points from the current price.”

In our follow up March review, we urged our readers to maintain short positions and added interim targets (9200, 9070, and 8725) https://www.econotimes.com/FxWirePro-Call-Review-Maintain-short-positions-in-IBEX35-interim-targets-added-1219403

Since then, the IBEX35/ESP35 has reversed course and rose from as low as 9330 (ESP35) to 10050 as of today riding on increased risk aversion and global stock market rally. Nevertheless, we do not believe that our bear call in IBEX35/ESP35 is under threat and we would like to urge our readers to add additional short positions at the current rate and add further short positions at rallies of every 150 points.