Last week, we warned that US equity markets were forming potential ending wave patterns and the high beta indices reversed sharply lower. As we have been warning, investors have been moving down the risk curve as rates rise and liquidity declines - the fractures started in Emerging Market currencies and equities, pushed through to commodities, […]

Last week we saw a continuation of the 4th wave triangle thrusts we have been monitoring. Importantly, global equities did not participate in this latest rally as Emerging markets faltered and European equities were dragged down by its banking sector. There has been a lot of speculation that we are at the start of a […]

The summer grind continues as bullish triangles led the risk markets higher with no signs of a tradable top. The US$ started its corrective decline as expected which supported Emerging Markets and commodities across the board. Markets are poorly positioned for a near term US$ decline so we should expect a continuation of these near […]

Perspective - as global liquidity declines, capital flows to the best house on a bad street in a flight to perceived safety. The US capital markets have been the main beneficiary while Emerging markets and higher risk asset classes get liquidated. We are in a world of historically high and growing dollar denominated debt in […]

Last week equities and rates failed at resistance as expected as the Euro and Aussie$ broke down from their respective triangles. The strong US$ continues to pressure PM's while crude oil rallied from structural support as tweeted during the week. Our base case has been that this rally from the April lows was an ending […]