• 373 days Will The ECB Continue To Hike Rates?
  • 373 days Forbes: Aramco Remains Largest Company In The Middle East
  • 375 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 775 days Could Crypto Overtake Traditional Investment?
  • 780 days Americans Still Quitting Jobs At Record Pace
  • 782 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 785 days Is The Dollar Too Strong?
  • 785 days Big Tech Disappoints Investors on Earnings Calls
  • 786 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 787 days China Is Quietly Trying To Distance Itself From Russia
  • 788 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 792 days Crypto Investors Won Big In 2021
  • 792 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 793 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 795 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 796 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 799 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 800 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 800 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 802 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Eurostoxx Leading the Way

It is difficult to trade in current market conditions because the market is only driven by the political newsflow (Fed's decisions, Bernanke's testimony, Draghi's declaration, Obama, Boehner, Merkel, ...). In this context, trend are less relevant and huge move (up or down) can occur at any time. Anyway, we want to continue to test our model, even in those difficult market conditions...


The US and EU equity market was able to rally on both Thursday and Friday. When we look at recent performance, the Eurostoxx is the clear leader followed by the CAC. The DAX isn't anymore the leading European index and US indexes are lagging the European ones.

The Sigma Whole Market Index is just below a small horizontal resistance (pink line). We think it would be normal to get some sort of pullback at this level and it will be very interesting to analyze (if it occurs) if the pullback is impulsive or not.

Sigma Whole Market Index Chart

The Eurostoxx is very strong and was able to print a new 52 weeks high. It looks very clear there is a shift from US to EU and from industrials to financials. This is the main justification of the recent outperformance of the Eurostoxx and CAC40 vs the DAX.

Estoxx Chart

The CAC is right below its 52weeks high. Will we get some sort of consolidation prior to further advance?

CAC40 Chart

The DAX is weaker than the Eurostoxx and the CAC but the chart remains bullish, no doubt about that.

DAX Chart

The Sigma trend Index increased from '1' to '6' and Friday's move was impulsive (with the 'Swing' at '4').

ST Model table

The ST model uplifted its stop levels on most indexes:

SPX ST table

NDX ST Table

CAC ST Table

DAX ST Table

ESTOXX ST Table

Short Term Trading Book:
- SPX: 1 long at 1691.97 (stop @ 1653, 3pts below the ST model to take into account bid/ask spread)
- NDX: 1 long at 3204.34 (stop @ 3116, 5pts below the ST model to take into account bid/ask spread)
- CAC: 1 long at 4219.62 (stop @ 4131, 5pts below the ST model to take into account bid/ask spread)
- DAX: 1 long at 8717.86 (stop @ 8384, 10pts below ST model to take into account bid/ask spread)
- EStoxx: 1 long at 2974.95 (stop @ 2878, 5pts below the ST model to take into account bid/ask spread)

Medium Term Trading Book:
- No more medium term position at this stage.

 


For those of you interested in our trades or in our methodology, you can visit our site. A full description of our ST model and MT model is available on our site. You can also subscribe to our twitter account (@SigmaTradingOsc), it is free and you are updated on our latest view/trades.

 

Back to homepage

Leave a comment

Leave a comment