HEDLines – Archive

Equity markets dropped in Europe yesterday, followed to a lesser extent by the US and hardly at all later in Asia. The context is one of continued compressions in the US, as reported in the November 24th edition. Here we…

Equities and bonds have both dropped sharply after the head of the European Central Bank said merely what was expected – that QE would last even longer and that rates were to be cut a bit. The drop has been…

December wheat futures made a bottom extension yesterday. The contract expires this month so this sign of ‘exhaustion’ selling may have only brief local relevance but we should take note anyway. The forward months are trading at higher prices the…

There have been a series of daily-scale compressions across European equity indices that are now breaking upward: This comes on Thanksgiving day when US exchanges are mostly closed – although US electronic Equity index futures are open and also trading…

30-year US bond futures traded up to 155 24/32 earlier this morning. This is just above the level at which we advised selling all government bonds bought earlier in the month and going short. We would not advise short-selling the…

The rally in US and European equity markets continued throughout last week, taking the three main indices that we follow (S&P500, Dow industrials, Nasdaq) back up near to the highs made earlier in the month. There is overhead resistance from…

Various Government bond markets have rallied in the past two weeks after bottom extension signals in some of the shorter maturities, as reported in the November 9th and November 10th editions. We advised ‘playing the bounce’ and readers should now…

Cocoa futures have rallied since a bottom extension in early October and have now made a top extension. This a good moment to point out a few things: Similar strings of market data don’t always produce the same signal. These…

Stocks are experiencing a post-terrorist attack ‘snap-back’. Prices reached a slight new low for the recent down-move on Sunday evening/Monday morning and have since risen sharply, recovering most of the losses of last week. We did not use the dip…

We advised selling short various equity markets, starting with the US in this 23rd October edition – one of several that day – then  adding our three usual European short-sale candidates in the 26th October edition. These trades begin to…