(First published by email on Thursday 14th October)
The YEN has been notably weak for most of this year, starting with a weekly-scale compression in late January. The drop continued in September after a daily -scale compression also broke downward and now there has been a bottom extension, which should produce some kind of end to the weakness. We always advise buying bottom extensions, so buy some Yen.
BUNDS We advised selling US and other government bonds in late July. The drop that ensued after a few more days was quite severe in the German Bund, which has now extended. Cover and go long. This applies to all the bonds you may have sold, even though we have no other signal.
Lastly, SOY MEAL has also been weak lately. This has mystified many in the trade, who point to the demand for Soyabeans to crush for oil, as a fuel component. It may be that Meal now has some of the status of ‘by-product’ that was previously that of Soya Oil, which would partly explain the weakness. Now there has been a bottom extension. Buy.
All signals generated by software produced by our friends at Parallax Financial Research www.pfr.com