Another great macro technical report from the Swiss team. There is a lot of detail in the report from regional index comment to sector comment to commodity comments. Its a full report which i find hard to disagree with. The cyclical story is unfolding. Fundamentally it remains unproven for the moment but technically there is increasing evidence that we could be at the start of a significant up wave here. Due to unbelievably lose monetary conditions i would forget the weak fundamental story and stick like glue to the technical price flows and patterns.
All eyes to the Fed’s comments, forward looking and hopefully action tomorrow evening. Next week we have the Japanese elections and then the BOJ at the end of the week. Markets have been choppy and rotational in much of 2012. A steady flow of capital into risk markets would produce some decent trends that we market participants are eager to see. All to play for.
Here the report: Weekly11-12
Rich
p.s. Not to confuse matters but here some fundamental analysis from Wells on today’s US trade nos. For economists and followers of the “big picture” debt monetizations to fund consumption can lead to a falling currency as well as a worsening trade balance. Such a combination is disastrous in the long term as effectively you are consuming your wealth to fund consumption of imported products and services redistributing wealth in this process. The US and UK are both following this path at present. But these are long term issues that can take many years or even decades before the consequences are crystallized.
Here the report:US-Trade-11-12-12
(6 votes, average: 5.00 out of 5)
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