Every two weeks, CHANDLER ASSET PROTECTION LTD reviews the main indexes in equities, currencies and commodities through 58 different charts.

A worthwhile guide to get a feel for the next move and / or the important turning points.

EQUITIES

Last week’s close showed an array of SELL signals across the board. Almost every equity market ended the 2019 rebound, with some marking the top right at their moving averages. Only Australia and New Zealand are showing positive configurations.

The bear phase we expected for February has started. The question is whether it will mark a higher low or whether it will go through December’s low and complete the cyclical bear market.  We privilege the former.

China’s equity markets are disconnected and are taking a life of their won.

MXWO – MSCI World Equity Index
SELL

MXEF – MSCI Emerging Markest Index
SELL

MXAP – MSCI Asia Pacific All Country Index
SELL

Americas

USA – Dow Jones Industrial Index
HOLD

Once again, the US market is lagging behind the rest and the Reversal has not been completed yet on the Dow Jones which climbed back above its two moving averages. The index is Losing momentum and is short term overbought.

USA – Standard & Poor’s 500
SELL

The SP500 is less positive than the Dow Jones and failed to pass the short term moving average. A re-test of the December lows is a high probability.

USA – Nasdaq Index
SELL

Canada – Toronto Stock Exchange
SELL

Mexico – MEXBOL Index
SELL

Brazil – IBOV Index
REDUCE

Europe

European stocks are displaying clearly negative configurations. Cash is King in Europe

Europe – EUROSTOXX 50 Index
SELL

Germany – DAX30 Index
SELL

Switzerland – SMI Index
SELL

UK – FT 100 Index
SELL

France – CAC 40 Index SELL

Spain – IBEX 35 Index
HOLD

Italy – FTSE MIB 30 Index
SELL

Turkey – DJ Titans 20
SELL

Russia – IMOEX Index
SELL

Middle East

UAE – DFMGI Index
BUY

UAE – Abu Dhabi General Index
SELL

Saudi Arabia – TADAWUL Index
HOLD

Asia

Australia – ASX Index
BUY

Australia was one of the best performing markets last week and broke above its moving averages in one sharp move up as the Australian Dollar was weakening. It may be a sign of things to come for the other markets or just a continuation of the long-term disconnect of the South Pacific Nations.

New Zealand – NZ 50 Index
BUY

Japan – Nikkei 225 Index
SELL

Japan – Topix Index
SELL

CHINA – TAIWAN

China and Taiwan were closed all week for the Chinese New Year

Hong Kong – HSI
HOLD

Singapore – STI Index 
HOLD

Korea – KOSPI Index SELL

Indonesia – JCI Index
SELL

Malaysia – KLCI Index
SELL

Thailand – SET Index
SELL

The Philippines – PCOMP Index
SELL

Vietnam – VNI Index
SELL

India – SENSEX Index
HOLD


CURRENCIES

The US dollar made an important reversal last week and is pointing to more strength contrary to our expectations. We are tightening our stop losses on our EURO long call and may reverse our positions.

The Russian Ruble was buoyed by Moody’s Investors Service decision on 8th February 2019 to upgrade Russia’s sovereign credit rating to ‘Baa3’ from ‘Ba1’. The agency justified the move citing the positive impact of policies enacted in recent years which have boosted the country’s public finance and strengthened its economy against external shock including fresh sanctions. Standard & Poor’s credit rating for Russia stands at BBB- with stable outlook. Fitch’s credit rating for Russia was last reported at BBB- with positive outlook.

DXY – US dollar Index
BUY

EUR – Euro
Watch

JPY – Japanese Yen
Neutral

CNY – Chinese Yuan
BUY

CAD – Canadian Dollar
SELL

AUD – Australian Dollar
Watch

GBP – British Pound
BUY

TRY – Turkish Lira
BUY

RUB – Russian Ruble
BUY

Cryptocurrencies

XBTUSD – Bitcoins

As always, traders are trying to prevent Bitcoins to fall through major supports. But every time the attempt fails. We stay short


COMMODITIES

Oil’s countertrend rally is ending and last week marked the first reversal since December’s bottom. There could be another bout of strength towards 58 before we short again.

Gold and Silver are making a pause in what is otherwise a well-established uptrend.

CL1 – CRUDE OIL
SELL on Strength

XAU – Gold
STAY LONG

XAG – Silver
Hold

HG1 – Copper                                                            Watch

XPD – Palladium                                  SELL with a Stop Loss

Palladium tried to negate its negative configuration last week. It is still highly overbought and the top that was made a few weeks ago is still very much in place. We remain on the bearish side with a tight stop-loss though.

XPT – Platinum                             Accumulate with Stop Loss

Platinum fell last week and is testing once again the 800 support level. The bottoming out process is still very much in place and only a significant break below the 2018 lows would negate the constructive outlook.

SB1 – Sugar                                                       Accumulate

KC1 – Coffee                                                                Accumulate