- New Science in old markets -

Equity markets – take profits on longs

We recommended covering shorts in the US and Europe and reversing into long positions in the 4th February edition:

These markets almost immediately rallied and compressions quickly formed and broke up in the Nasdaq and Eurostoxx futures which gave a boost to the up-move:

We the advised in the last edition on February 10th that quick profits should be taken as the longer-term picture remained poor. Prices then pushed higher, reaching the resistance that we had identified in that same edition:

We assume that you have now sold out of those longs for profits of a little over 4% in each market. We wait to advise selling short again as there is something of a turn due on Friday that may mark the high of this rally. That turn is two days away - a little too distant to take action yet, although it is tempting, so we wait. Equity Markets may form a range until then or even push a bit higher.

More soon.