Attached charts of some risk aversion proxies. Consistent conclusion across ie risk reduction on weekly time frame = New trend?- Equities (S&P500) : Sharp UpTL break last week seeing follow thru selling. Headed for 1036 in short order.
- Rates (EDM0/EDZ0) Back to narrowing path = pricing out of some future Fed hikes.
- FX (AUD/JPY) : UpTL broken. Carry trades unwind.
- Commodities (Crude) : Same. UpTL broken. (Copper chart is even more convincing).
- >Exp GDP data on Friday and market exhibits risk aversion. Thus, price action has right "feel" for equity/growth bears, confirming weak technical outlook. GO FOR IT!
30 January 2010
Risk Aversion Rules OK!
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