EUR 241.04 For Business Accounts Only

The NAVIGATOR - SPECIAL: Sector Analysis XLK Technology and XLY Consumer Discretionary!

In This Edition:

Stock Indices – In this month’s edition of the Elliott Wave Navigator, we take a moment to examine last month’s sector analysis on the performance of the Swiss SMI relative to the benchmark Eurostoxx 50 index ahead of first-round French elections – does it make sense to hedge exposure into the SMI? Or should a portfolio instead shift out of the MDAX, Germany’s mid-cap company index? Last month’s ‘SELL’ signal in the U.S. KBW-Banking Index is also reviewed amidst quarterly earnings results. U.S. Consulting firm ‘Integrity Research’ has just published the results of its latest industry survey on the content of research produced by the ‘sell-side’ to its portfolio fund management clients. Obviously, the sector coverage is driven by demand and that is itself driven by outperformance – the top two sectors produced by the survey’s respondents are Technology at 74% per cent and Consumer Discretionary at 65% per cent. This month’s report takes an in-depth look at these two to see if outperformance within the existing secular-bull uptrend can be justified in the months, years ahead. We’ll also examine one of the stella-outperforming industry components of the Consumer discretionary sector. To obtain more comprehensive results from this survey, please contact:

Integrity Research Associates - an advisory firm which analyses the global investment research industry | www.integrity-research.com

Currencies – The US$ dollar’s direction is again updated following heightened geopolitical tensions between President Trump’s administration and North Korea’s regime. We assess the dollar’s decline from January’s high and whether the Euro/US$ will actually attempt parity now that Goldman Sachs and other prominent investment banks have abandoned their calls made earlier this year. The first round of French elections has whittled down several candidates to just two, centrist Emmanuel Macron and far-right Marine Le Pen with a final vote for Presidential candidacy taking place on May 7^th. Safe-haven strategies have been in demand although we don’t expect the right-wing National-Front party to gain access to the Élysée Palace basis our larger-picture forecasts of the Euro. This report updates Stlg/US$ following the U.K.’s announcement for a general election this summer, the contrasting short-term outlooks for the US$/Yen, the impact of weakening iron-ore prices on the AUD/US$, US$/CAD, US$/BRL, political tensions reflected in the US$/ZAR and finally, a short-term update of the US$/MXN.

Interest Rates – Long-dated interest rates have staged declines since the Federal Reserve hiked short-term maturities in March. This contradictory development has been subsumed by geopolitical tensions and anxieties over a potential disintegration within the Eurozone by up-coming elections in France. We examine if this nervousness is justified by taking a look at the pattern-progression of Treasury and Bund yields but also the French FRY10yr development.