the daily chartist

What's next for the upcoming week on the calendar 29.10 - 02.11

published 8 months ago

 We are nearing the end of October and nevertheless, we have a lot of things to keep an eye out on the economics calendar.

Starting off with Monday we have Japan Retail Sales when Asia opens 2.1%/2.7% and during the EU session, we have UK Mortgage Approvals rolling in with a forecast of 65K vs 66K forecast. During the whole day, we have the EU Economic Forecast as tentative so it's a good idea to watch out for that one, we may have some interesting things coming out. With the pre-market following for the US session, we have Core PCE Price Index 0.1%/0.0% and Personal Spending 0.4%/0.3%.

Tuesday starts again with fundamentals from Japan with the Unemployment Rate coming in early Asia opening forecasted to pop at 2.4% from 2.4% previous. Sometime during the EU trading, we are going to anticipate the German Perlim CPI data 0.1%/0.4% and the German Unemployment Change -12K/-23K. For the EU Zone, we have after that the EU Perlim Flash GDP q/q 0.4%/0.3%. In the US trading, we have the CB Consumer Confidence forecasted to come out at 136.3 points versus 138.4 previously. And as we move into the closing of the US we have BOC Gov Poloz speaking. 

Wednesday starts off with Japan again and Perlim Industrial Production -0.2%/0.2%. During Asia trading, we are going to see the Japan Monetary Policy Statement, BOJ Policy Rates -0.10%/-0.10% that's for the BOJ not touching the rates yet and the BOJ Outlook Report. During the BOJ statements, we have JPY Consumer Confidence 43.5/43.4 and Housing Starts -0.5%/1.6%. As Europe begins we have German Retail Sales 0.5%/-0.1% and EU CPI Flash Estimate 2.1%/2.1%, CORE CPI Flash Estimate 1.0%/0.9% and EU Unemployment Rate 8.1%/8.1%. All in for inflation and the employment market. The US will hit us with the USD ADP Non-Farm Employment Change 190K forecast vs 230K and moments after that we have CAD GDP 0.2% previously, no forecast and USD Chicago PMI 60.3/60.4 and USD Crude Oil Inventories where previously they were 6.3M. Finishing the day we have BOC Gov Poloz speaking.

Thursday and the new month of November begin with JPY again and Final Manufacturing PMI 53.1/53.1. EU trading will bring us a ton of news for the UK economy. We have the GBP Manufacturing PMI 53.1/53.8, BOE Inflation Report, MPC Official Bank Rate Votes 0-0-9/0-0-9, Monetary Policy Summary, Official Bank Rate 0.75%/0.75% and BOE Gov Carney speaking. USD Unemployment Claims follows 213K/215K and ISM Manufacturing PMI 59/59.8. 

Ending the week, on Friday, we have German Final Manufacturing PMI 52.3/52.3. GBP Construction PMI 52/52.1 and on the US session we have CAD Employment Change 63K previously, Unemployment Rate 5.9% previously, CAD Trade Balance 0.5B previously and USD Average Hourly Earnings 0.2%/0.3%, Non-Farm Employment Change 191K/134K and Trade Balance -53.4B/-53.2B. 

 That's it pretty much, of course, you can filter out what you want by country or importance in the calendar on the site here or alternative ones if you have to decide what's important for you and what not. I am recapping only the most basic and important economic fundamentals that may and can drive the markets to have somewhat of an impact. Wishing everyone a successful week ahead!

 

Trading strategy using the Relative Strenght Index (RSI)

published 8 months ago
EUR/USD H1

The Relative Strength Index - RSI is a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions. It is primarily used to attempt to identify overbought or oversold conditions in the trading of an asset.

The relative strength index (RSI) is calculated using the following formula:

RSI = 100 - 100 / (1 + RS)

Where RS = Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame. The RSI provides a relative evaluation of the strength of a security's recent price performance, thus making it a momentum indicator. RSI values range from 0 to 100. The default time frame for comparing up periods to down periods is 14, as in 14 trading days. Traditional interpretation and usage of the RSI is that RSI values of 70 or above indicate that a security is becoming overbought or overvalued, and therefore, may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below is commonly interpreted as indicating an oversold or undervalued condition that may signal a trend change or corrective price reversal to the upside.

Sudden large price movements can create false buy or sell signals in the RSI. It is, therefore, best used with refinements to its application or in conjunction with other, confirming technical indicators.

Some traders, in an attempt to avoid false signals from the RSI, use more extreme RSI values as buy or sell signals, such as RSI readings above 80 to indicate overbought conditions and RSI readings below 20 to indicate oversold conditions. The RSI is often used in conjunction with trendlines, as trendline support or resistance often coincides with support or resistance levels in the RSI reading.

In the example here we can observe the EUR/USD on the 1-hour time frame. 

The RSI indicator has been applied to the chart with the parameters of 11 as period, not 14 and with highlighted levels of the overbought 70 and oversold 30. I have marked the areas on the indicator where the security or the instrument is in the relevant situations. As well of that I have distinguished 6 situations capturing past moments and a recent one with a buying signal in the middle of Friday's market activity. 

As we can see in situation 1 we have a buying signal on the 09.10 with and we can take a long position in the pair until the next signal, which is a sell one on 10.10 (the next day). There we can close the position and open a short one with the next candle. That's 100 pips profit. In situation 2 we have the sell signal, but probably it will hit our stop loss as the price continues to move up. On situation 3 we have another sell signal where we will return our losses for sure and we can close nicely on situation 4 where we can buy because of the buy signal on 18.10, but unfortunately with another stop loss. 

Watching for a divergence between price and the RSI indicator is another means of refining its application. Divergence occurs when a security makes a new high or low in price but the RSI does not make a corresponding new high or low value. Bearish divergence, when price makes a new high but the RSI does not, is taken as a sell signal. Bullish divergence, which is interpreted as a buy signal, occurs when price makes a new low, but the RSI value does not.

In situation 5 we have a bearish divergence where with a sell signal from RSI as it comes above from level 70 gives us a second signal and a confirmation that the price indeed will fall down hard. On the next candle, we can sell with an appropriate stop loss. Situation 6 is from Friday. We have a buy signal and a bullish divergence as well. Buying on the next candle would have left us with +80 pips floating equity and if we are satisfied we can close it there on the opening on Monday or wait for a sell signal. 

RSI can be a profitable indicator, but it is not recommended to use it only alone. Try combining the indicator with moving averages, trend lines or other indicators to find more confirmations and to be more aware of the signal that is provided from RSI won't be a fake one, because the price is actually on the bottom or top lines of a trend or on a major support or resistance. And as always, test it on demo first before going live with it. 

 

FOREX Jargon and terms

published 8 months ago

Markets have a language all their own and within that language, FOREX has its own dialect. Here are some of the terms and jargon words that are used daily in different communication and commentaries. 

Accommodation/ accommodative

Another way of referring to easy or easier monetary policy, often used as a code word by central bankers

All Ordinaries

An Australian stock index

APP

Asset Purchase Program: It’s not just something you find on your phone, it’s a BOJ initiative introduced in 2010 as a monetary easing tool where it buys government bonds with up to three years until maturity (and also corporate debt, ETFs and REITs) and trust funds investing in stocks and property.

ASX200

The main Australian stock index

Aussie

The Australian Dollar - (or a person that speaks with an interesting accent)

Bank for International Settlements (BIS)

An international organization which fosters monetary and financial cooperation and serves as a bank for central banks. The BIS often acts as an agent in the forex market, allowing central banks to mask their identity in an attempt to dampen market impact.

Barrier Option

A type of option whose payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price. A barrier option can be a knock-out, meaning it can expire worthless if the underlying exceeds a certain price, limiting profits for the holder but limiting losses for the writer. It can also be a knock-in, meaning it has no value until the underlying reaches a certain price.

Bid

A buy order placed at or below the market.

BoC

Bank of Canada

BoE

Bank of England

BoJ

Bank of Japan

BTFD

Buy the f****** dip!

BTPs

Italian government bonds

Buba

The market nickname for the Bundesbank, Germany’s inflation-obsessed central bank

Bunds

German 10-year government bonds. The Bobl is the 5 year and Schatz the 2-year.

Cable

Nickname for GBP/USD. Originates from the use of transatlantic cables to transact currency deals years ago. Anyone who uses terms like “Cable-yen” or “euro-cable” is to be dismissed as an amateur.

CAC

The French stock index, the CAC 40

Candle / Candlestick

A method of charting price action. The subject of multitudes of books and the preferred method of charting at ForexLive.

Corporates

The treasury departments of large multinational corporations. They are responsible for hedging the forex exposures of their firms, which can have dramatic impacts on earnings for firms with large overseas sales. For example, a company like Airbus has massive revenues in dollars but has most of its cost base in euros. They must hedge their currency exposures to try and offset this mis-match.

CTA Accounts

An entry in the comprehensive income section of a translated balance sheet summarizing the gains/losses resulting from varying exchange rates over the years. A CTA entry is required under the Financial Accounting Standards Board (FASB) No.52 rule as a means of helping investors differentiate between actual operating gains/losses and those generated via translation.

Custody Bank

A bank which holds securities in custody for other financial institutions, does their bookkeeping and settles their trading activity. Examples include Bank of New York Mellon, State Street and Northern Trust Co. Also know as custodians.

DAX

German stock index, the DAX 30

Delta

The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the “hedge ratio”.

Dovish

A statement related to monetary policy which implies looser policy (lower rates).

Easy (easing)

Refers to monetary policy tending towards lower interest rates. Monetary authorities (a central bank) will want easy monetary policies (lower interest rates and even perhaps a program like quantitative easing, in order to encourage economic growth).

EBS (Electronic Broking Services)

A wholesale electronic trading platform used to trade between interbank dealers. It's like an ECN for banks.

ECB

European Central Bank

Ecofin

A council consisting of the economy and finance ministers of the European Union. They meet once a month.

Emergency Liquidity Assistance (ELA)

The provision of liquidity by member national banks of the European System of Central Banks (Eurosystem) to individual banks. The provision of liquidity is made under exceptional circumstances to illiquid institutions unable to obtain liquidity either in the market or from participation in monetary policy operations (shut out by the ECB). Loans are made against collateral and are at the risk of the national central bank.

ETF

An Exchange Traded Fund (the BOJ has bought ETFs as part of its APP easing program).

EuroDollar

Not the Euro; a pet peeve of many old FX traders is to hear the euro currency referred to as ‘eurodollar’. A eurodollar refers to a US dollar on deposit at banks outside the US. Similarly, eurodollar futures are a very popular interest-rate futures contract.

Eurogroup

A group of finance ministers of countries who are members of the euro. Its spokesman is Jean-Claude Junckers, the finance minister of Luxembourg.

European Financial Stability Facility (ESFS)

Is a legal instrument agreed by the 27 member states of the European Union on 9 May 2010, aiming at preserving financial stability in Europe by providing financial assistance to eurozone states in difficulty. Colloquially known as ‘euro SPV’ or ‘euro TARP’.

Fade

To trade counter to. For instance, to “fade a trend” is to counter the trend. To fade a rumor is to believe it to be untrue and do the opposite of what the rumor would suggest.

Fed

The Federal Reserve Bank, the central bank for the United States.

Fibonacci retracements

A useful tool for traders as markets correct during trends. Technicians look for support on pullbacks at 38.2% of the uptrend or rebounds in an downtrend, 50% and 61.8%. Derived from the “golden ratio” of Italian mathematician Fibonacci.

Footsie

UK stock index, the FTSE100

Forward guidance

Forward guidance can take many forms, but, in essence, all of them involve a central bank saying, or at least hinting at, what its going to do with monetary policy do before they do it. 
There is a more detailed explanation at this post.

FOMC

Federal Open Market Committee, the monetary policy-setting group within the Federal Reserve Bank of the USA. It consists of 12 members, the seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank presidents 9selected on a rotating basis for one-year terms).

Funds

Market nickname for the USD/CAD currency pair.

Gamma

Concepts in the options markets are expressed in terms of the Greek alphabet. Gamma refers to the rate of change in an option’s delta relative to the price of the underlying asset. A short gamma position will become shorter as the price of the underlying asset increases. As the market rallies, you are effectively selling more and more of the underlying asset as the delta becomes more negative.

Gilts

UK government bonds

Give

To transact a deal on the bid price, i.e. to sell at the bid price, to whoever is bidding.

Given

Past tense of give, what has happened if you’ve crossed the spread and sold at the bid.

Gotobi

A cultural tradition in Japan of settling accounts on the 5th day of the month (and on dates that are multiples of 5, so 5, 10, 15, 20, 25 and 30). In FX markets it relates to importer demand for USD/JPY, said to occur on the 5th of each month. Needs to be taken with a grain of salt, markets are not that simple: but at least now when you see commentators referring to Gotobi demand, you’ll know what they mean.

Governing Council (of the ECB)

The Governing Council is the 23-member monetary policy-setting group within the European Central Bank. Generally, anyone who is referred to as part of the ECB on ForexLive is a member of the Governing Council.

Haircut

When bondholders are forced or voluntarily take a worse deal than the one outlined in the bond covenant.

Hawkish

A statement regarding monetary policy which implies tighter policy (higher rates).

Hindenburg Omen

A stock market technical indicator when two trading days within 30 days of each other where, on the same day, 10-week moving average is rising, new highs are greater than 2.2% of total issues traded, new lows are greater than 2.2% of total issues traded, and the McClellan Oscillator is negative.

HKMA

Hong Kong Monetary Authority, the central bank of Hong Kong.

Ichimoku

(Ichimoku Kinko Hyo)A series of technical indicators packaged together and overlaid on a candlestick or bar chart to form the Ichimoku chart. Popularly used for yen crosses.

IMM

The International Monetary Market division of the Chicago Mercantile Exchange. This is the exchange where the bulk of the currency futures trading takes place worldwide. Net positions on the exchange are compiled each week and reported in the Commitments of Traders report on Friday afternoons.

Interbank

The bank-to-bank market in foreign exchange. Banks can deal directly with each other in currencies, most often over the phone, or through EBS or Reuters Dealing. ‘Interbank’ dealing usually refers to the direct dealing between banks with no broker intervening (classing EBS and Reuters as brokers in this context as they serve to match up buyers and sellers). Bank ‘A’ contacts Bank ‘B’ and asks for a price in (for example) USD/JPY, in an amount (20 million USD, for example). Bank ‘B’ ‘makes’ (in this way banks are market makers to each other) a price, showing a bid and an offer: Bank A is then free to transact a deal on the shown bid or offer, or to pass and not deal.

Jiji

A major Japanese news agency (like Reuters).

JGB

Japanese government bonds.

Jobber

A trader who buys and sells, often frequently, to seize short-term market opportunity. Can be intraday or over a couple of days. This doesn’t exclude him/her from having a longer term view, and will often trade in the short term contra to that core view

KCNA

Korean Central News Agency, the state news agency of North Korea

Kiwi

The New Zealand dollar, from the flightless kiwi bird, found only in New Zealand.

Kospi

The South Korean stock index.

Loonie

Nickname for the Canadian dollar. Derives from the picture of a Loon on the $1 coin. What is a $2 coin called? A twonie, of course!

Long

Being long is when you’ve bought with the intention of selling at a higher price in order to profit. For example, being long EUR/USD is have bought euro against USD, with the plan being to sell the euro at a higher price in order to profit.

LTRO - Long-term refinancing operations

Long-term collateralized loans extended by the ECB to member banks. Terms have ranged from 3 months up to 3-years.

Maple bonds

A foreign company bond that is sold in Canadian dollars.

Market Profile

A rarely-seen type of charting pioneered and patented by Peter Steidlmayer.

MAS

The Monetary Auuthority of Singapore, Singapore’s central bank.

Mine

What an interbank dealer will say to a counterparty or voice broker when he (or she) wants to buy.

Model Fund

Hedge fund which uses some form of quantitative model to initiate and liquidate trades. The most familiar type of funds are trend-followers like J.W. Henry and Co. Many of these funds trade at set times during the day, often at 10 am New York time.

MPC

Monetary Policy Committee of the Bank of England, which meets once a month to decide on the official interest rate in the UK.

Mrs Watannabe

A collective term that originally applied to Japanese housewife speculators, but is now used to refer to Japanese retail margin FX traders. They can be a powerful force.

Nikkei

A major Japanese newspaper.

Nikkei225

The main Japanese stock index.

OATs

French government bonds.

OMT

The ECB program introduced in August 2012 to directly buy government bonds in the secondary market. Can only be used after a government asks for financial assistance.

Offer

A sell order places at or above the market price.

Operation Twist

A monetary policy operation last used in the early 1960s in which the Fed sold shorter-dated Treasuries from their portfolio and purchased longer-dated maturities in order to drive down long-term interest rates. The overall size of the Fed’s balance sheet is not impacted by the move.

Option Expires

The standard expiry time is 10 am New York. Mostly vanilla contracts ( see vanilla options ) but also some barrier option interest too ( see barrier options)

Orders

For info on how to trade the orderboard.

Want to know how to trade the order board? See this post!

Outside day key reversal

Key reversals are outside days at either trend highs or trend lows. A key reversal occurs when a market makes a new high, then reverses down, takes out the previous day’s low and closes lower than the previous day’s close.

Paid

Past tense of pay, what has just happened if you’ve crossed the spread an bought at the offer

Pari-passu

On equal footing, in Latin. Refers to bond holders having equal rights in the event of a debt restructuring.

Pay

To transact a deal on the offered price, i.e. to buy at the offered price, to whoever is offering.

PBoC

The People’s Bank of China, China’s central bank

Plain Vanilla Option

The most basic option type with a simple expiration date and strike price with no additional features.

Point and Figure

A method of charting price action.

Prime Brokers

Firms which allow clients like hedge funds to use their credit facilities to access financial markets. For example, a hedge fund client of Bank X can trade in the interbank FX market using Bank X’s name in return for a fee.

Quantitative Ease(ing)

A strategy used by central banks once targeting short-term interest rates becomes ineffective because rates have reached zero (or close to it). The central bank buys assets, typically government bonds, in an effort to inject money into the economy.

RBA

Reserve Bank of Australia (central bank)

RBNZ

The Reserve Bank of New Zealand, New Zealand’s central bank

Reflation Trade

The purchase of asset classes that investors expect to do well in an economic recovery. Commodities, equities and emerging markets are examples. Asset classes to be avoided in a reflationary atmosphere include bonds and low-yielding currencies.

Real Money

Generally refers to non-leveraged funds (mutuals, for example).

REIT

Real Estate Investment Trust (the BOJ has recently been buying Japan REITs as part of its APP easing program).

Rinban

Refers to BOJ buying government bonds from the market in regular market operations (the other BOJ bond-buying program is the APP: Asset Purchase Program. The two were recently merged into one by the BOJ).

Securities Market Program

The program in which the ECB purchases government bonds of members states where the market has pushed yields up beyond what the ECB sees as fundamentally justifiable. The ECB sterilizes the euros added to the monetary system on a weekly basis so as not to impact overall money supply. It is a method of monetary policy transmission.

Short

In financial markets being short refers to selling something you don’t own (with the intention of buying it back at a lower price in order to profit). Its the same in the FX market. For example, to be short USD/JPY means you have sold USD against yen, with the intention of buying back USD/JPY when the rate has fallen in order to profit.

SPI

Australian Share Price index futures contract (based on the ASX200).

Spot Market

In interbank FX the spot market is the market for currencies to be deleivered within a two-day period (or oneday in the case of the USD/CAD and some others).

Spread

The space between a bid an offer, eg. if the price is 35 bid and 36.5 offered, the spread is said to be one and a half points. In order to get set in a position with no waiting (when you simply must be on board NOW) it is necessary to cross the spread to pay the offer (i.e. if you want to be long and dont want to place a bid but just want in right now) or give the bid (i.e.if you want to be short and dont want to place an offer but just want to be short right now).

Stop Loss

An order which closes out a market position once a certain price level trades in the market. For example, a sell order placed below the market price to protect against accelerating losses.

Sovereign wealth fund (SWF)

A fund set up by a country with large foreign exchange reserves to help manage those reserves. Typically SWFs purchase long-term securities to try and enhance investment returns beyond what central banks typically earn holding government debt. Examples include the Government of Singapore Investment Company and the Abu Dhabi Investment Authority.

Sovereign names

Used interchangeably for sovereign wealth funds or central banks.

SNB

Swiss National Bank, the central bank of Switzerland

Tankan

There is a Bank of Japan Tankan Survey and a Reuters Tankan Survey. Both are surveys of manufacturing and service companies designed to assess business conditions in Japan. The BOJ Tankan is conducted quarterly, the Reuters Tankan is monthly.

Taper / Tapering

It is thought that the Federal Reserve will begin to slow down its asset purchasing in response to an improving US economy not requiring so much monetary accommodation. This slowing down (not stopping) of purchases is referred to as tapering

Thin

a market condition where prices are not as liquid as would normally be expected.

Trend

Those things we always seem to be fighting. Just kidding. A tendency of a currency pair to move in a consistent direction. For example, USD/JPY had an uptrend from October 2012 to April 2013 (from around 78 to 99 as of writing).

Toshin

A Toshin fund is a Japanese investment trusts which invest in non-yen denominated assets, for example, foreign bonds or stocks. In brief, Japanese funds invested abroad.

Vanilla Option

A financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, within a given time frame. A vanilla option is a normal call or put option that has standardized terms and no special or unusual features. It is generally traded on an exchange such as the Chicago Board Options Exchange.

Voice Broker

On interbank dealing desks broking is conducted via screens but also via ‘voice brokers’, where dealers listen to brokers speaking/yelling out prices (eg. 35/38, i.e. 35 bid and 38 offered) and transact with the brokers by speaking/yelling back. It sort of like a permanently open telephone line on speaker. Voice broking persists, but electronic, screen-based trading has taken much of the volume.

Whipsaw

When a price heads off in one direction only to be followed very quickly by a move in the opposite direction. For example, EUR/USD may break technical resistance at a price, trade 10 or so points higher than a few minutes later have fallen 30 or more points. Longs have been ‘whipsawed’.

Xinhua News Agency

Ministry level - official press agency of China (PROC).

Yard

Market slang for “billion”.

Yours

What an interbank dealer will say to a counterparty or voice broker when he (or she) wants to sell.

it's important to understand forex jargon to know what traders are thinking. To take advantage of changes in forex trading sentiment, you need to understand ‘trader talk’ to quickly comprehend what FX traders may be doing next based on what they are saying and the language they are using most often. it’s a good idea to breakdown common foreign exchange commentary so my readers can understand exactly what I am trying to convey. 

Double trouble for Cable

published 8 months ago
GBP/USD Daily

Sterling has also been placed under pressure as uncertainty grows surrounding the Brexit deal if it happens at all by the end of this year. We've seen some resilience from the Pound, showing some gains against weakening dollar across the board as we had a test on the upper trend line of the descending channel, test on the 200 daily moving average and all failed. Price quickly returned to inside the bearish wedge to form a double top as well. We had a breach on the wedge line a test on the 23.6 Fibo and the price has returned inside. Demarker has reversed forming a sell signal. Price is under the 1.3000 price level as well. 

With all that, we can take sell positions with an appropriate stop loss level at 1.31000. There is a potential for the price to go down towards the 1.26613 price level for a take profit. 

Dow Jones moving away from a complete disaster

published 8 months ago
DJIA Daily

Recent weeks have been a tough one for global equities and indexes all across the globe as we have seen some heavy selling, something we haven't witnessed since February and March of this year. As rapid as it can get, selling can spread swiftly across the major exchanges and quickly make everyone's red lamp to light and signal for an incoming catastrophe. 

Yesterday DJIA dipped under the 200 daily moving average and then buyers came in to save the day. The situation was averted, but we have three days left of this week so anything can happen. There are buying opportunities on the dips inside the green support zone, where the price finds support around the 200 daily and a couple of near-term trend lines. The index itself is still inside the long-term uptrend. 

Alternatively: selling can begin once we have full closure under the 200 daily moving average, under the green zone, breach of 23.6 with closing under it and backtest of the level, which needs to fail. Currently, the battle still rages on for the future of the index and not only the US ones. We are talking globally here. Nothing more than fear has driven the markets to jump into a selling cycle as we have doubts about the future expansion of the global economy as it is showing early signs of slowing and the pressure from the FED continuing forward with their current monetary policy of increasing rates. As we are in the middle of the earnings season as well the effect from the better than expected results from reports are not enough to settle an accommodative boost to equities and indexes for new all-time highs. This itself is indicative enough of the sentiment of the market participants and casts a shadow for the short-term performance of the major indexes.