I’m floating around some small islands off Ibiza in the Baleric Islands at present. Thanks to mobile wifi coverage im bringing you this from well off shore.
Finally the technical weakness we have witnessed for the last few months appears to breaking down these various equity indexes.
As soon as i have a better wifi signal ill update this but below the Swiss team’s report.
Its an excellent report in which they are pretty comfortable that the summer high has been scored by the SP500. They offer a possibility of a marginal new high in the index later in the year inside the report but upon evidence. According to their cyclical work we have started a new 30yr cycle of equity strength. In nominal terms i certainly agree. In real terms, the bear market will continue for some time i suspect do to the endless policy mistakes all around us.
The commodities are badly sliding thus far including the softs which normally see summer inflows and are normally good decent inverse correlation tools to equities. El Ninon, for now, is not leading to higher prices. Some fertilizer cos are bouncing however. Oil is threatening a key support level here. I got knocked out of some sept futures a week ago but am looking for a re-entry.
FX continues to be a wonderfully consistent asset class for my own book with the well flagged US$ long trade in full motion. Its a very crowded trade now so on extension its worth taking a little profit i suspect. USDJPY is a very interesting pair and subject to the BOJ is in process of destroying her safe heaven status. Once the status is destroyed the pair will be an e3xcellent trading pair with an emphasis to enormous jpy weakness. But only once the safe heaven status of the jpy is totally destroyed by the BOJ.
Precious metals more patience is demanded but its positive chart on the long term and clear evidence of a base here.
Without delay here the report.
Update to come
Rich