The Spanish bond auction went well with double the previous coverage and yields slightly lower. The German stock markets continue to outperform the US , comforted by some possible bottoming of the economy ( I have even taken a small punt on the MIB at 15,500). Since we started talking about the turnaround in the JYP and the positive influence it would have on the stock market, the Nikkei is up 15% and the EURJPY 9% ( I missed the first 4%) . November condo sales in Tokyo turned up 13.3% YoY , always a good sign . There should be some consolidation here, but I think that, medium term, there is still a lot of room on the upside.
The EURUSD made a high at 1.3102 versus yesterday 1.309730. Many will take this as a double top with the right shoulder developing right on our daily pivot, while the S&P is down.
The Tradercockpit 34 day’s indicator is starting to turn upwards again, so we will stay with our long position, but have reduced it tactically in favor of EURJPY. The indicators on the S&P are on a razors edge, just underneath a strong bull signal. Patience remains a virtue.