Global Outlook Q1 − 2008
Thu, Dec 27 2007, 09:12 GMT
by Trading Central Team
Trading Central
Overview
- - An MT consolidation pattern is forming on all major equity indices
- - The actual down move will continue in the forthcoming weeks
- - Implied volatility on indices remains high, but doesn't show any sign of reversal; reinforcing our bearish mood on Equity markets.
- - We continue to favour Large vs. Small caps, US stocks vs. European stocks and European stocks vs. Japanese stocks.
- - The US Dollar is seen as recovering in the short term (ST) yet remains weak in the long term (LT)
- - Interest rates have invalidated the LT trend & are now seen as weakening. Yield curves (USD, GBP, JPY, EUR) are steepening.
- - Euro LT yields are seen as outperforming the US yields.
- - Gold might signal potential weakness in the ST, however odds are calling for new historical highs
- - Crude Oil prices might undergo a ST consolidation in a LT rising trend
Published on
Thu, Dec 27 2007, 09:32 GMT
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