Following its September and October rebound, the Dollar has retraced strongly during November. We believe this situation may present an opportunity to enter and catch a further rebound into mid-December

When we came 10 days ago risk assets were still in linear uptrends. We then argued that given the exaggerations we saw then, the markets were probably due for some consolidation. And indeed, over the last 10 days, they have started to correct, slowly first and over the last few days with some acceleration. Our view is that this correction is not quite over yet. It could end this week or early next. Following that, we would expect risk assets to resume their uptrends towards y

The September/October Equity rally has ploughed through previous highs. It also seems that cyclicality is re-accelerating with nice rebounds on the Dollar and interest rates, while more defensive assets have corrected (Gold, EUR/USD). These trends look unstoppable and by and large, we believe they should persist probably into Spring next year. Yet, we believe it’s probably time for some kind of short term reset, a short term Stop and Go...