The Swiss team remain bullish and pro risk. Near term they forecast these overbought conditions to be worked off a little before new highs are achieved. They remain true to their buy their cyclical forecasts though admit that these themes have disappointed thus far. They pick out the Shanghai and the gold miners are being particularly disappointing but reaffirm their buy the weakness recommendation whilst acknowledging lower prices for both may come first, in the very near term. The dollar index has formed a new pivotal top, according to the team, which forms a key plank of their cyclical case. Given how far we have recently moved up it seems very reasonable to not expect new highs by the dax ftse etc in the near term but it does bode well for an end Dec attempt. The cyclical case remains potential for now. The Shanhai producing a large bounce last night but from new four year lows. There are some glimmers of life from the cyclical sectors but it remains weak price action for now.
Here the report.
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