Risk markets have surged upward and this bull starts yet another strong continuation upwards. Some might use the word parabolic to explain this recent price action. FX remains a little complicated for the moment. Bullion has fallen due to risk on but as risk on implies reflation (tip remains elevated) the gold move technical tactical and simply a reaction to her resistance. The dollar index some bearish moves which is also supportive. US$ adjusted Europe a seeing a renewal (FEZ). If the dollar bull is dead HK (2800) will likely be a big beneficiary even US$ adjusted.
The only thing I wish to add to the Swiss teams comments this week are on breadth. In case you hadn’t noticed this week’s risk on move has scored the best equity breadth since the end 2016 rally. US equities wise it doesn’t matter whether tech, small caps, large caps or finance this latest move has outstanding breadth. Even European index breadth is excellent here inc ftse100. Which ever way you cut this technically its hard to argue with this latest rally and I would stay long on this rally for now.
I’ll leave the detail to the guys who will express more eloquently than I.
Here the Swiss team:
And here Meisels taking a different perspective:
More to come guys.
All the best
Rich