Another week roles past and we have recorded, with 7 up-days in a row, the longest winning streak since September 2013. Tactically, the recent rally has been near vertical and many sectors are starting to look exhaustive in the near term again. Playing for short term pull backs is dangerous thing to do in such a strong market but having said this price is true at present so tactically if you have the time these tactical moves can be taken. On the near term the break out defensives (IDU) of their recent range is suggestive of a coming tactical pull back in the cyclicals.
US$ remains a hold as the Euro pushes lower again but momentum on the longer time frame is fading here so a profit point is likely coming at least on a tactical basis.
Here the Swiss team’s latest:
And here Fitzpatrick’s latest:
Note the forecast on the Euro.. Certainly on the macro side political risks are coming to the Euro in 2017. He’s been dead right on copper’s recent strength, if a bit early in calling it, so another hats off to Fitzpatrick.
Ill update this as a V2 later today or tomorrow so please look out for the update.
I hope all are enjoying this run. almost daily new record highs on the book of assets it seems as inflation beds in.
All the best
Rich