The Swiss team are pretty much where they were last week.Short term very overbought. Increasing divergences with selectiveness increasing as the broad based rally breaks down.  A pull back before the final leg up to 1370 (and change)  into end q1 early q2 before the cyclical bear resumes. The JPY and Nikkie very interesting and timely. I would add the BOJ’s recent monetization buying JGBs. I would add into the picture consideration of what the impact would be on Asian equity markets should the JPY start to break down? My guestimate is that the effect of Jpy weakness would be very positive for stable asian markets like Singapore and Hongkong as investment inflows would follow from jpy weakness. The strength of emerging markets is not simply about their balancesheets it is also about the relative balance sheets of developed market economies.

Weekly14-02

All the best

Rich

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