US equites are not cheap vs. EU or key Asian sectors, on the other hand small caps had a great month. The question is, why?
FANGs stocks are likely to push higher forcing short sellers to purchase back taking the indexes to new levels as they did today at the close.
Money Flow
North America investments went to cash and bonds and about 3.2Bn exited equities. Notice the inflow of cash Asian stocks. It is likely that European and American investors are adding risks at attractive valuations in Asia. In a year, we will know how this trade works.
SPX
The monthly chart closed strong. On the other hand, R Option ended September at 0.2% after a long period with zero market exposure.
RebasingChart Sep ’17
Energy 8.7% had a great month and
Utilities -3.5% showed weakness since the 12th of September.
GOLD
My view is neutral now; I have positions that will benefit if we continue trading lower.
I was expecting 1300 to hold as support but it did not. A new Fibonacci is near.
