FOMO, The Swiss Equity Market leads the way!

The Swiss20 index touched new all-time highs today.  The index is up over 13.5% year to date.  The Swiss Market Index (SMI) represent 80% of the entire Swiss equity market Cap and 90% of the trading volume on the SIX Swiss Exchange.

The top 5 companies in the Swiss index:

Nestle

Novartis

Roche

Swiss Re

UBS

Is the performance of the Swiss index, which is heavy on banks, Insurance, pharma and food/beverage a signal for the rest of the markets that valuations and global growth are positive and we can expect new highs soon in other markets?  Or are we seeing a heavy dose of FOMO (Fear Of Missing Out) and investors are not afraid of a market correction, rather on missing the next leg higher?

Trade update:

It seems the focus of the Trump approach is moving, in the short term, towards Europe, particularly France as Trumps is focused on tariffs of 11 Bln USD of EU goods.

It is not a big number considering the amount of trade between the U.S. and Europe, but with Brexit, European elections and other issues taking up the focus of politicians, this adds another issue to deal with.  Add in Mexico, China and Canada uncertainty and trade trouble doesn’t seem to be priced in.

Charts we are following closely:

We look for a break of the 9.6150 level to sell EURNOK. Buoyant equity markets and high oil prices helping NOK.

EURUSD trying the upper end of range.  Pain trade is higher, but we see resistance from 1.1280 to 1.1300, break above opens for test of 1.1400.

If bearish the Euro, a sell here with stop above 1.1310 looks interesting.

Gold is in the middle of it’s recent range and we will be looking a breakout to follow and our view is that we will see higher levels.

Contact us if you are interested in receiving real time trading signals. In doubt? Check out our track record below!

TickerDate OpenedEntry PriceStopTarget PriceCurrent Price% Change
Long CAMECO (CCJ:xnys)12/0311.9211.2013.0011.86-0,50%
Long Call Option XAUUSD18/0313.096.03-54,09%
Short Call Option XAUUSD18/035.113.34+34,64%

Visit our Position Tracker to look at all of our realized trades and proven track record!

– Mark W

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