The highlights for me from last week’s bear attach was the short sharp explosion in volatility together with a short term liquidity drain from the market. The most notable other issue was the euro carry trade de-lever which spiked up the euro even as markets fell. Commodities generally fell as US$ also fell.
To me these were all early warning shots of what is still to come. Some of the asset market moves of this early sell off are unlikely to sustain, imo, for the later moves that are still to come. Participants will be using any improved liquidity moments to adjust their positions in a less volatile manner in the coming weeks which should set up for the main event in end Sept throughout October and possibly into early November. Near term, with 1900 hit on the sp500 Tuesday we were set up for a corrective bounce from over sold levels which also applies to European indexs. I’m long dax on this basis as a tactical trade.
Without delay here the Swiss team’s latest.
And here the latest GS tech report:
And here the latest from Fitzpatrick
And here LCM’s tech latest
And here UB with their specific stock tech charts and levels:
And here CS with their allocations and monthly: