11 Jun IS FEAR about to wash over these markets?
The UK election went ‘wrong’ and now the Fed may raise rates. Should you sell?
The leading indicators for me are the Nikkei and Nasdaq, with bonds, gold and yen.
I don’t think they are pointing to a crash but I do think we retrace; I’m hoping for an early push higher into Tuesday and then sellers to appear.
I think the fact the Fed are in a position to increase rates should be taken as a sign of confidence but the main issue I think is the fact that stocks are expensive and we are seeing profit taking.
Cyclically, this is the time of year when Banks and hedge funds scale back the chart patterns we are seeing line up with that we have reached that point in the markets where the probability of higher moves are limited at best.
More updates to follow.