We pointed out a bottom extension in a Brazilian equity index in the last issue and that Mexico had fallen into support from an old compression. Canada made a bottom extension the next day and China the session after that. Regular readers will know that we almost always recommend buying markets that make bottom extensions, so please now add these to your ‘buy’ list. Of course, this broadening geographic spread of similar signals probably means that other markets will also rally from hereabouts:
At the same time, the persistent strength of the $ against other currencies has now produced extensions. Here we show the Euro, the £ and the $ index itself, which obviously moves in opposition to the other two. Again, we generally advise buying any market that makes a bottom extension, and so we do here. There have however already been three extensions in a row in the £ and two in the others (meaning there maybe one or two more), so we would:
- take any profits you may have. We advised buying the $ in the April 1st edition, so take that 5%
- look for signs of reversal and then jump in with long currencies/short $ positions. If brave go now
All signals generated by software produced by our friends at Parallax Financial Research www.pfr.com
