The serious negotiations for the positive outcome of the Trade War are sending Chinese equities and the Chinese YUAN roaring.
Complacency is back in the US equity markets.
Dubai, Malaysia, Vietnam and Greece are catching up strongly.
India remains hesitant.
The US Dollar is neutral but we see the path of least resistance to the downside as the consensus is far too optimistic and investors and speculators are heavily long the Greenback.
Buy CNY and GBP.
Short EUR and JPY.
Gold is overbought but metals are strong on a successful resumption of World Trade and Investments.
Agricultural products are deeply Oversold
After the strongest January rally in 40 years, global equities are still powering ahead on the back of positive news on the US – China Trade War and clear signals from central banks that they are pausing in their monetary tightening.
China, Asia and Emerging markets are clearly catching up while American markets are overbought and over-owned.
We expect a correction in March before a Q2 rally develops.