Korean Retreat: Kim Changes Tune, Threatens Summit

Daily Analysis - 16/05/2018

North Korea Might Backtrack

True to form, the Korean leader Mr. Kim has begun the well understood ritual of giving with one hand and taking back with the other. The routine has been honed by the 3 generations of the Kim dynasty, going back to the war the grandfather of the current ruler fought with the UN forces. He now says that he will not be forced into disbanding his nuclear weapons arsenal nor is the summit with Trump a foredrawn conclusion.

Swiss Franc Corrects

The Swiss Franc, aka the Swissie, has been correcting for the last month, gaining strength against the major trading currencies worldwide. We say correcting because this is the universal term used when price changes direction from the major trend that is underway. That major trend is called the secular trend. These corrections are common and a function of simple human nature. As a trend remains in train for a long time the proclivity of traders is to take profits out of the trend now and then. The long term weakening of the CHF goes back to early September 2017.

DAX Slowly Works its Way Up

The world’s stock markets are slowly grinding their way back to their level prior to the falls of February. Buying continues not only in the DAX but throughout practically all of the major stock markets of the world. These are not raging bull runs, but rather slow and steady gains made day by day. Remember, the markets were at all-time highs prior to the last panic. They are not going to rescale those heights overnight. They will approach that pinnacle where so much money was lost with caution.

Siemens Up

The giant world beating conglomerate: she makes literally thousands of products in hundreds of market sectors, is on the run lately and is a fine buying opportunity today.

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