Another week rolls by and its been the theme of continued world equity mkts strength. Rising US$ rates expectations and a small jump in inflation expectations. Asia continues to out perform and the Eurostoxx50 hits her 2014 resistance level and FEZ (eurostoxx50US$) scores another breakout higher high of this trend.
Ill leave the equity detail to the guys this week as its a pretty thorough report from the team. But just to add US finance continues her breakout alongside the vertical soxx. Transports are weak and providing non confirmation as the team rightly point out. Its yet more of this low volatility trend continuation of which has existed for several months now. The cyclical trade remains in motion but the narrowing is evident.
FX wise the GBP has been the currency to borrow and she has put in very bearish looking patterns again vs the euro and the US$. The US$ needs soon to breakout vs the JPY if that carry is to be sustained.
Commodities are maintaining the correlations to inflation and the US$. We have no confirmation, as yet, of a top of the recent price moves.
And what of the new currency in town ie Bitcoin? Technically she continues to trade very nicely for price candle traders and chartists. The bull flag of the last few weeks was broken Sunday. The momentum in the instrument is immense. News flow wise the CME have announced futures to be launched soon. This makes Bitcoin a part of the financial markets and there fore can be considered a valid trading instrument. Whether she is an investment asset class in her own right im not so sure but the wait to test this may not be long. Once an asset starts to become widely traded her role in markets will become quickly apparent. Timing wise its worth noting that only 18000 people own 63% of all bitcoins. Its a very thinly held market at present!
Here the Swiss team:
And here GS with CTM:
The conviction 2 trade eurgbp in trouble after today.
Here Louis Capital, bullish copper:
And here UBS with the ground up US equity technical review:
For my book, once again, new record highs this week. Its been a great bull market and if you get the carry right its even sweeter than great.
All the best
Rich