The usual award winning technical analysis from the usual Swiss team.
They have firmed up on the recent technical improvement across indexes. They are no longer forecasting a correction near term.
Their cyclical model remains as was previously ie a deep correction into early 2014.
Its the FX markets that are providing the fizz at present. The eurusd is key to so many asset markets. The recent euro moves are exciting but not conclusive yet.
ECB thursday must be watched. SC and UB here in this report forecasting more us$ weakness. Nomura and JPM taking the other side.
A lower US$ would signal tightening of liquidity as the US$ is the funding global currency. A tightening now with near zero inflation and declining money velocity would potentially be a disastrous event for asset markets.
I’m not convinced on the US$ near term vs the euro but i have no fixed view here. It will be meaningful however if we get direction on the dollar basket in either direction.
I’m out of time to comment on this right now. I know people here are waiting for this report so release now to save time.
All the best
Rich
p.s. here attached the excellent Thunder Road report.
181202824-Thunderroad-Report-Q4-pdf
(14 votes, average: 5.00 out of 5)
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