The US equity markets are in line of sight of a full reversal of last week’s bear candle in only two trading sessions. Its certainly very impressive price action for the bulls. A reversal of price like this on the weekly would be bullish and invite those short to cover and reverse potentially. From failed moves come fast moves and this latest price move has been fast indeed and invites a fast still follow through in terms of technical practice. We must recall that we are mid way through the Tuesday session.
FX wise the JPY falling again today in spite of the extremely positive risk on flows.
Their comments on the Japanese and EM markets are insightful and on a relative near term basis i agree they are good value.
For my own book im retaining hedges for now. I’ll review the data on the tech when we get closer to the end of the trading week. The technical backdrop has not improved thus far though perhaps by the end of the week it will convince. Lets see.
Without delay here the Swiss team’s regular report.
Rich