We are bearish US equity markets here. All key markets have enough waves in place to complete their near term rallies. With investor sentiment and complacency at extreme levels, near term risk remains to the downside. The US$ is also approaching downside targets with investor sentiment at extremes. The Aussie$ and Dr Copper near term […]

US equity markets have now achieved upside objectives to complete respective wave 5 of (3) so risk is now firmly to the downside. Bonds have rallied into our sell zones but there is a risk that these waves are impulsive - high risk of failure for the bear trade. US$ shorts are a heavily one-sided […]

Some equity markets made new ATH's last week as we had been anticipating while the US$ continued its decline as a reaction to weak economic data and a more accommodative Fed. While we see further US$ weakness to come across the board, the near term bearish US$ sentiment is approaching extreme levels so be careful […]

Last week saw a continuation of the rising global bond yields we had been focusing on. This trend was supported by a weakening Yen and Precious Metals. Global equities mostly churned sideways in non-directional trade. In an ideal world, we would like to see one more marginal new high in the SPX, DJIA and RUT […]

Last week we got the major bond bearish reversal we had been tracking closely. This will likely have significant implications for the FX, commodity and equity markets over time. The "price of money" and "global liquidity" is determined by the bond market. Fortunately, our technical analysis helped us see this coming before everyone else! Central […]