As of the last trading date, I had lower exposure to US Equities. At the moment R Option have limited exposure to the Equity Markets but we all know that this could change fast. Euro Dollar is trading in the lower price range of the year which manifest the strength of American Equities with the SP500 near 15%YTD
1.Trading in line with PE Ratio the SP500 is negative MTD and 14% YTD. We experienced an increase in option premium which pushed R Option to increase cash levels.
2 .PE Ratio is lagging price on the daily chart. The last weekly and monthly candle does confirm price discovery lower. Selling continued even with US Market Trading Higher
3. World Equities with over 1600 instruments is as of last close to Q2 ’19 positive. Last trading week had positive return which marked sector rotation on equities with more exposure to North America.
4. The weakest chart of today’s update confirm that the inflection point was the last week of April. YTD 3.17%. An strong USD could continue to put pressure on Emerging Equity Markets.
5. Q2 ’19 started weak and the first two weeks of May did not change much. Trade news increased Volatility around the world, I do not expect to remain low. The index is above 15% YTD.
Currently, Trade news are dominating the news topic but the selloff came from a Double Top on most US Indexes. Please refer to the long term chart on the SPX Q4 ’18 and Q2 ’19.