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Not yet

Posted: 06/26/2013 - 10:34 am

The UAE markets were able to rebound off their lows yesterday but the price action is still far from signaling selling exhaustion.

The word from some brokers is that foreigners remain net sellers. This validates the view we have expressed for some time now in that traders should not be buying the dips (read: Contagion risk).

If shorting was possible, we would be recommending selling into the rebounds but clearly this is not an option here. All traders can do is sit back and wait for the market to send out new buying signals.

One thing I would highlight here is the need for being patient. The latest pull-back and any additional selling should eventually open the door for some great buying opportunities.

Traders should not feel anxious sitting on cash.

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