Momentum is a very powerful thang, especially when powered by a theme of synchronized global expansion and “blockbuster” retail money flows into stocks. No worries about extreme valuations in MoMo markets, however.
Note to self: Will not chase, will not short until market tells us to.
Of course, global asset markets are in a huge bubble. Let the trend play out and let markets break before getting shorty.
Could go until beginning of summer – maybe – but trying to pick exact tops and time corrections are a mug’s game. Why our preference is for trend based models.
– Euro periphery tightening on spec ECB to issue EURO bond to extract from QE;
– Yield seekers going all-in in Brazil;
– German 10-year approaches key resistance at 60-ish bps as ‘zone economy rips;
– Euro breaks resistance at 1.20. Economic rip and hope of a Merkel government.
– EM stocks continue to rock;
— Russia in catch-up mode;
– Mexico hit on reports U.S. wants to dump NAFTA;
— Nigeria, baby! Though POTUS may not, markets love the “shithole” countries.
Other Risk Indicators
– VIX up even as new records are ubiquitous;
– Trannies rocking the free world;
– Euro banks on verge of breaking out.
– Crude breaking to new highs;
– The widow maker (Nattie) up yuge on record inventory draw;
– Grains continue to trade like wet dogs that don’t hunt.