Bear market rally warms up

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The AUD is still pointing risk higher:

Aussie bonds have been hosed at the long end, representing a great entry opportunity:

Stocks have a neat little inverse head and shoulder pattern:

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Dalian is soft:

Big Iron is running as it mistakes restocking for a new round of Chinese stimulus:

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Big Gas is up too. I’m agnostic on oil now. The bottom is probably in as US rigs start to fall but you never know:

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Big Gold is jumping. I called this rally in December as the Fed was clearly going to pause. But I think selling into it is the play as the ECB has to reverse even harder:

Banks are enjoying another dead cat bounce:

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Big Property too:

I expect this rally to have some legs for a while. I’ll be selling into it.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.