Spanish Markets Fundamentals and Technicals Point Higher
With the supposed China "phase 1" deal being agreed upon...even though when no actual facts are really being presented and now the Americans are claiming it will be signed mid January...the trade has still been risk on.
Markets globally liked the news as some uncertainties dissipate and we are set for a Santa Clause rally.
I like what I see in the Spanish markets, the Ibex. I believe it generally is lagging behind some of the Asian markets, the American and European markets.
Remember folks, it is not about forward guidance. There is nowhere to go for yield anymore except stocks in this environment where central banks keep interest rates artificially suppressed.
As a fund manager, you cannot be in cash for a long period of time. Your clients pay you for yield. Bonds yield very low...way below the pension fun targets of 8% and they historically are heavy fixed income...not anymore. Real estate? Property taxes do bring yield down and most funds do not want to become REITs. Some say cryptos but that would only happen once it gets regulated. No fund manager would put clients money in cryptos knowing that exchanges do not have the money to pay you back if Bitcoin goes higher because legally, they do not need to since they are NOT regulated.
Stocks are the only place to go, and I think these markets that are lagging will be attracting money chasing yield.
The Ibex has been in a downtrend with lower highs and lower lows. We then began to base long term and even created a double bottom pattern. You can see that this range was composed of trends and a head and shoulders pattern we traded in the past.
Recently, we created a larger head and shoulders pattern which I find very interesting. With todays daily break, which is strong, the trade is triggered.
We are looking at the 10,000 for first tp.
Markets globally liked the news as some uncertainties dissipate and we are set for a Santa Clause rally.
I like what I see in the Spanish markets, the Ibex. I believe it generally is lagging behind some of the Asian markets, the American and European markets.
Remember folks, it is not about forward guidance. There is nowhere to go for yield anymore except stocks in this environment where central banks keep interest rates artificially suppressed.
As a fund manager, you cannot be in cash for a long period of time. Your clients pay you for yield. Bonds yield very low...way below the pension fun targets of 8% and they historically are heavy fixed income...not anymore. Real estate? Property taxes do bring yield down and most funds do not want to become REITs. Some say cryptos but that would only happen once it gets regulated. No fund manager would put clients money in cryptos knowing that exchanges do not have the money to pay you back if Bitcoin goes higher because legally, they do not need to since they are NOT regulated.
Stocks are the only place to go, and I think these markets that are lagging will be attracting money chasing yield.
The Ibex has been in a downtrend with lower highs and lower lows. We then began to base long term and even created a double bottom pattern. You can see that this range was composed of trends and a head and shoulders pattern we traded in the past.
Recently, we created a larger head and shoulders pattern which I find very interesting. With todays daily break, which is strong, the trade is triggered.
We are looking at the 10,000 for first tp.
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