The Markets in Charts Apr, 6th 2019

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.

EQUITIES

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.

World Indexes

MXWO – MSCI World Equity Index BUY

MXEF – MSCI Emerging Market Index BUY

MXAP – MSCI Asia Pacific All Index BUY

Americas

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

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

Middle East

Dubai – DFMGI Index STRONG BUY

Saudi Arabia – TADAWUL Index HOLD

Asia

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

CURRENCIES

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