How do we read this and what does it tell us?
First, let us reduce the world to 4 key markets that have a lead indicator function (we take those by the order above):
• Japan: down week and overall down 7.7% to last year – continued economic crisis, we not considering until the Nikkei breaks a key level of support or resistance.
• China: up week but still down 22.1% to last year. Not yet at par in evaluation and overinvestment does not give us a good market read.
• Germany: down week and up 1.9% to last year. Interesting that one of the world export leaders for industrial goods is still up while other markets are down.
• United States (S&P 500): down week, and down by 3.4% to last year.
We will follow the development of the DAX closely to see where it might take us in the upcoming week. Within Germany being 6 hours ahead to New York, we found our guide for next week. Interesting to note that Mexico and Canada (both depending on Oil and Industrial Production) show a more positive trend than the US. .
Considering the German, Mexican, Canadian Stock market development compared to the US, we assume for the US a potential for a slight market upturn in the upcoming week, but decide if we want to be bullish by our market indicators.
“It is not us to tell the market where it is going, it is the market who takes us where we want to be.”
Check us out at : http://neverlosstrading.com/
No comments:
Post a Comment