Sunday, 25 January 2015

Weekly Update - Week Ended 23 January 2015

Market Summary and Technical 
·        Euro continues downtrend on larger than expected QE purchases
·        US equities remain in a narrow range
o   Some improvement in market internals, with intermediate trends turning neutral
·        Gold reaches $1,300 level!

[Market Summary]

[Trend Watch] 

[Selected Charts]

[Market Breadth]

 Readings and Trends 
·        QE in Europe begins
o   pace of €60bn a month from March until at least September 2016, higher than the €50bn a month expected
·        Long term bonds rise as inflation expectations get lower (FT)
o   rally in government bonds has pushed the yield on the 30-year US government bond to its lowest on record at 2.35 per cent last week
·        Fight against ISIS – funding difficulties with low oil prices (FT)

 Investment Implications and Opportunities 

·        How does the world get away from QE and low rate addiction?
·    Hold some gold – it looks relatively better compared to fiat currency which continue their perpetual loss of value 

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