It is the time to take a more defensive stance in the global equity markets. MSCI All Countries World Index which includes the performance of developed and emerging markets, found resistance at 430 levels and reversed. MACD, a momentum indicator is generating a sell signal on the monthly scale chart. These are all bearish signals. STOXX […]
Industrial metals continue to remain weak. Charts warn of a slowdown in global growth. Copper, usually regarded as Dr. Copper due to its leading indicator role for economic growth, is warning us of a possible breakdown and a correction. Chart patterns are result of human interaction. Forces of greed and fear meet in the market […]
Both DAX and Russell 2000 indices formed bearish chart patterns. These are developing chart patterns. In other words we still need to see confirmation. DAX is possibly forming a head and shoulder top. Neckline (support) is at 8,900 levels. Decisive breakdown below 8,900 will confirm the year-long top formation on Germany’s DAX index. Head and […]
Lumber prices prepare for a strong breakout from a 2 year-long consolidation. Since the beginning of 2013, prices have been consolidating in a contracting range with the boundaries now standing at 360 and 300 levels. Latest rally towards the upper boundary suggests prices are likely to challenge the strong resistance in the following days/week. A decisive breakout above […]
Here are some of the emerging market currencies that I see vulnerable against the U.S. dollar in the medium/long-term. U.S. dollar had a strong rally against major cross rates and most of the emerging market currencies. In the short-term we might be due for a pull-back and some weakness for the U.S. dollar but in […]
Scotland will remain part of United Kingdom following historic referendum vote. What is next for the financial markets? Over the past few weeks we have seen increased volatility in the currency markets. GBP/USD cross rate fell from 1.68 levels to 1.60. It is now rebounding back to 1.645 levels. For the equity markets we can’t […]
Long-term opportunities don’t often come along. So when they do it’s worth paying attention to these developments. In the beginning of 2014, AUD/NZD cross-rate was finding support at a multi-decade horizontal trend line. Base formation took more than 5 months to develop. I sent out two updates one in (April 30,2014) and one in (June […]
Global equity markets are at a critical juncture. Most of the major equity benchmarks are testing multi-year trend resistances. These are decade-long trend lines and if they are broken on the upside, it will signal further equity market strength for coming years. STOXX 50 (includes UK companies), an equity benchmark for Europe, is testing 14 […]
Over the past 4 years, China has been an under-performer. Chinese equity market has clearly lagged the global recovery. Though, poor performance can end soon. Several Chinese companies are listed in Hong Kong and the Hang Seng Index is ready to breakout from a flat range. Hang Seng index is pushing above strong resistance area […]
Dollar is gaining strength against major currencies. Recent breakout on the U.S. dollar index confirms this. Other than Euro and Japanese yen weakness we are also seeing depreciation in emerging market currencies. Combined weakening effect of the developed and emerging market currencies resulted in a sharp price movement on the U.S. dollar index. Latest breakout above […]
