There have been sporadic new compressions in US and European equity indices again. These seem either to have provided support on yesterday’s dip or to be breaking up today. Two examples here that can be bought, although of these two, only France has clearly broken up:
Malaysia has dropped lately and made bottom extensions. Buy it:
We may suggest buying some US equity instruments later on today or very soon after, as several sectors have compressed and are poised to break up. More on this as we see it.
Lastly, both crude and Rbob futures have compressed and are dropping. This would be a ‘sell’ signal except that we have longer-term reasons to be bullish here, as remarked in the April 2nd edition. If you want a very short-term trade (a few days, perhaps) then sell these short here, but don’t risk much:
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