HEDLines – Archive

The MDax index of German second-tier companies made a top extension yesterday and so did the Dow 88 index of the largest companies in China, both at a daily scale. Taken with the FTSE top extensions reported yesterday, these two…

The new enthusiasm for stocks has catapulted the UK stock market FTSE100 index far above pre-Brexit levels. As written here and elsewhere, this is mainly due to the ‘bargains’ that the falling £ has produced – 70% of earnings in…

Stocks have generally firmed around the world during the last week. Those markets where uptrends already existed have made further gains and some of those that were in trading ranges have pushed above them. This fits our view that the next…

Both 30-year and 10-year US treasury bond and note futures compressed within the last 48 hours. The 10-year is breaking up as I write but the 30-year is not (yet). The Bond market is obviously over-valued by historic standards but…

Cocoa prices have been trading in a range all this year and in a slightly wider range for the two prior years. There were some weekly-scale compression signals in June and July that seem to have broken downward, arguing that this…

Nasdaq futures made a top extension yesterday: This is the latest in a series of top extensions in various US equity indices that started about two weeks ago, meaning that the current up-move is still over-stretched. As we have already…

Equity markets have been trading mostly sideways since we reported top extensions in the July 15th edition. We often remind readers that top extensions mark the imminent end of up-moves but not necessarily the beginning of down-moves as there may…

There have been multiple top extensions in US equity indices, including signals from the three major measures – the S&P, Dow and Nasdaq. This last example came two days ago from the popular QQQ instrument: This is a warning that…

The warnings that we have been issuing since the end of the first quarter about a possible bubble in US stocks have suddenly become timely. There was a sharp dip in stocks everywhere after the pesky UK electorate  rejected their superiors’…

The drop in the £ after the UK voted to leave the EU has continued in the subsequent ten days  and so has the rise in the Yen in its odd new status as a ‘flight currency’. These moves are now over-done as…