By Chris Becker
The recovery continues, particularly on US stocks as 2018 brings forth more volatility and hence more opportunity. The USD is continuing its trajectory down, while Treasury yields go higher, but risk markets are getting back into the swing of things regardless. This bounce has not yet returned all the losses yet, and particularly outside Wall Street, the technical picture is not as rosy as it seems. For mind we are still in a short covering phase, not full blown recovery.
Looking at the longer term view on stock markets first, the Shanghai Composite finally picked up last week, boucing off terminal support at the psychologically important 3000 point level. Importantly it didn’t fall below the previous lows so there is hope here that it could sustain this recovery. I’m watching 3300 points as the next target to reach:
