Good afternoon guys,
We have had a pretty reasonable tactical bounce here which is likely to extend as the 13th march higher high of this move was scored with confirming price momentum and 20 day decent breadth. There is enough evidence to suggest the US equity risk bounce is not over yet therefore albeit within this higher volatility year.
Sector wise its text book guys. Issues that score a historic inverse to rates have barely bounced at all and are close to their lows eg US housing, defensive indexes etc. Whereas cyclical issues that generally score a positive correlation to rates have a much more positive price chart and therefore scoring the plus beta with near new highs eg Russel2000, finance, tech, etc. And indeed some indexes eg Banking, as flagged so many times, have already scored higher highs scoring the alpha.
Its classic wave five selectivity as forecast by the guys and hopefully your own practice.
As we have a trend change I remind again please be very careful with any mean reversion catch up trades. The Hsi has indeed, as expected, been the better mean reversion catch up trade rather than the dax or ibex35 etc. And thats in spite of the US$ getting a bid here. We have a trend change here already playing out. Its classic action.
One tech chart perspective Sp500:
Ive remain almost fully engaged on OTC BTC transactions with the main actions across my book of assets being to sell on bounces the non cyclical sectors. Im in no rush yet to sell the cyclicals though the day is fast approaching but its not yet according to my practice.
To the reports with more likely as a V2 asap.
Here on FX:
Quant media:
All the best guys and do reach out if you need something
Thanks Rich