EUR 104.42 For Business Accounts Only

DBD Strategy Daily - WATCH U.S. BONDS

We have seldom noticed so much confusion on charts. In the US, whether one looks at spot of future prices, we had a new bearish signal yesterday or not. In Europe, all country indices are at different distances of supports. Defensive sectors are in a much weaker technical position than Cyclical and Financial sectors. Food has not out-performed Auto in the fall ! It is very hard to make an opinion concerning the gravity of the situation as it falls out of usual norms, with excessively high volatility bringing an extra difficulty to identify correct risk-rewards. The advantage of technical analysis is to make a complicated matter simple with a few stop-losses to monitor. They are very far away on indices, but we can watch the T-Note Future with attention. It still is in a bearish trend, both short-term and intraday. Should it break above 121.25 we would recommend closing most bearish Bond-trades. This would probably alleviate the bearish pressures on indices. In the meantime, bearish risks are dominant.