Secondary Top

Timing is critical in markets. This end of week looks very much like a top on the European markets with all sorts of indicators flashing red. We advise selling or hedging for those that haven’t done so already.

While we are critical of ‘sell in May and go away’ type rules of thumb (it hasn’t worked for the last several years and especially not last year) this looks to be a very seasonal year and we would try and be as liquid as possible now.

Any abrupt fall confirms the top of January 26th which is looking quite distant now. Risk appetite is diminishing – credit spreads are next in line.

Our job is to indicate (potential) turning points. And there is one here now.

HH