The Swiss team have re-grouped and come back fighting. They didn’t get the pull back their models suggested. It has taken a month or so for them to really digest/accept this and re-set. We all learn by the rod here that you can’t get stubborn on these things. We are all paid on price and rightly or wrongly price had wanted higher levels. Their own indicators told them this but they got a little stubborn on the point. They monetarily lost the plot but have thank fully reset and composed themselves. To a person we all have these moments how ever much a pro system trader investor you are. Its just the way it is. The key point is to not get stuck but regroup and move on which they have successfully done this week.
To specifics. The team make good clear points on the energy and material theme breakouts which is consist with the typical later cycle rise of these sectors. They also point to the basing work in the Shanghai index which is a significant positive tail wind for material and energy themes alike. The asset class close to all our hearts here is the bullion and on the bullion they spend some time to address their own disappointment and surprise at the prolonged weakness. They sight the US$ index as well as inflation nos as well as rising interest rate expectations. This is all reasonable I agree. Their reading of the near term price moves fit perfectly my own expectations and comments to fellow traders and investors. The team are open to push through the 1300 level which I concur with. This would be a meaningful buying level representing potentially representing the low mark of the 20 month cyclical gold bear. Lets see. The team sight the next 5 to 10 sessions as all import. Again I concur absolutely with this as the most likely timing frame.
I won’t go through the Asian indexes but the team touch on the Shanghai and call for a 10 to 15% appreciation. This would be bullish the AUD in principle and commodities which fits with the material breakout. Here a reminder of a decent tech analysis on the Shanghai I have long referred to which also concurs.
http://www.stocktiming.com/Shanghai_Daily_Stock_Market_Updates/shanghai-index-update-monday.htm
Technically she has a base. There is price support and with positive technicals a good appreciation possible, so long as western markets don’t collapse which is unlikely given the breadth and strength of this bull market.
Without more delay here the report. Good to see the Swiss back to their usual standards.
And here I also include a neat report from Citi. It may become a regular. We have to see how they do.
All the best Rich
(16 votes, average: 5.00 out of 5)
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