Investor Agenda

Charting The Market

Kotick Tick By Tick

It's our weekly technical read of the markets with Jordan Kotick, Global Head of Technical Analysis in Kotick's Tick-By-Tick.

Q - You just got back from spending the week in the Middle East. What is the feel out there?

A - Overall, I thought the sentiment was somewhat apathetic. Middle Eastern equity markets have not been stellar performers. Further, energy/crude has remained subdued for a little while now. Overall, it seems that the region is confident in the long term direction of energy and markets in general and while not aggressively bearish, seem much more disinterested in global equity fluctuations than other parts of the world. 

Q - Any specific reason for that do you think?  

A - The relative underperformance of the Middle Eastern stock markets against other global equity markets has certainly played a part in keeping market interest subdued. However, we believe this is going to change. While still lagging, the Tadawul All Share Index (Saudi Arabia), DSM Index (Qatar), ADX General Index (Abu Dhabi) and Hermes Financial Index  (Egypt) just to name a few, are in various stages of breaking to the topside.  Since markets lead, we would expect sentiment and general market interest to begin growing again. The lag between an equity move and a general change in sentiment can often take 3-6 months.  

Q - What other market are they focused on?  

A - As a rule, the Dollar, Energy of course and as always, Gold. The break higher in the yellow metal this week received just as much attention there as it did in other parts of the world.

Q - You have been calling for higher gold and silver on Kotick Tick by Tick for a few months now. Is this what you expected, do you think it is finished?  

A - We have been long time bulls on gold and see no reason to alter that view. So far, the Gold move has been mainly a Dollar related move since Gold has been going up most aggressively in Dollar terms, less so when measured against the Euro, Swiss Franc and especially Japanese Yen. But we eventually expect this to become a pure Gold play as gold increases in value in all currency terms.



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