A resolutely bullish scenario for GLOBAL EQUITIES with very few SELL or HOLD signals. The global equity rally is fueled by the massive liquidity created by negative real interest rates and by a resumption of growth in China.
However, we may be reaching an inflection point in the US. Watch a challenging of the highs.
The US DOLLAR is about to break to the upside in a big way particularly against the CHF, the Japanese Yen and the EUR.
In COMMODITIES , Oil is making new highs, Platinum has started its secular rally, Palladium is a short and soft commodities are favored.
The strong revival of CRYPTOCURRENCIES : is it for real or is it a dead cat bounce ?
The Chart of the Week
US Investment Grade Corporate Bonds have risen 6.8 % since the beginning of the year.
They are not yet a screaming SELL, but investors should be watching them carefully for any signal to bail out.
Most equity markets are delivering strong BUY signals after the pause of the end of March.
Only US and Canadian Equities are closing in on their previous resistances and deserve to be reduced. Europe, China and most of Asia are starting a new up leg, supported by strong liquidity and better than expected Chinese economic numbers.
Emerging markets and Asia Pacific are clearly positive.
MXWO – MSCI World Equity Index BUY
MXEF – MSCI Emerging Market Index BUY
MXAP – MSCI Asia Pacific All Index BUY
USA – Dow Jones Index REDUCE
USA – SP 500 Index REDUCE
USA – Nasdaq Composite Index REDUCE
Canada – TSX Index REDUCE
Mexico – MEXBOL Index STRONG BUY
Brazil – IBOV Index REDUCE
Europe – EUROSTOXX 50 Index BUY
United Kingdom – FT 100 Index BUY
Germany – DAX 30 Index BUY
France – CAC 40 Index BUY
Netherlands – AEX Index BUY
Switzerland – SMI Index REDUCE
Sweden – OMX Index BUY
Italy – MIB 30 Index BUY
Spain – IBEX 35 Index STRONG BUY
Portugal – PSI 20 Index BUY
Greece – ASE Index STRONG BUY
Russia – IMOEX Index HOLD
Turkey – DJ Titans 20 Index REDUCE
Dubai – DFMGI Index STRONG BUY
Saudi Arabia – TADAWUL Index HOLD
China – CSI 300 Index BUY
China – Shanghai Composite Index BUY
China – Shenzhen Composite Index BUY
China – HSCEI Index BUY
Hong Kong – Hang Seng Index BUY
Taiwan – TWSE Index REDUCE
Korea – KOSPI Index BUY
Singapore – STI Index STRONG BUY
Indonesia – JCI Index SELL
Thailand – SET Index BUY
Malaysia – KLCI Index
Philippines – PCOMP Index BUY
Vietnam – VNI Index STRONG BUY
India – SENSEX Index
Australia – AS 51 Index SELL
New Zealand – NZ 50 Index HOLD
Real interest rate differentials will push the US dollar higher against all currencies apart form the YUAN, meaning that the YUAN should appreciate against all currencies