ELI WALLACH HAS GONE

If immediately you don’t recognise his name just take a look at this picture here. You get it now, right?

He was one of the greatest 'character actors' ever in America. In one report Clint Eastwood said, "working with Eli Wallach has been one of the great pleasures of my life."

He acted in the following remarkable and legendary roles:

• Calvera in The Magificent Seven (1960)
• Tuco in The Good, the Bad and the Ugly (1966)
• Don Altobello Godfather Part III (1990)
• Julie Steinhard Wall Street: Money Never Sleeps (2010)

The veteran stage and screen actor died last Tuesday, he was 99. He appeared in more than four dozen films over the past five decades and received an honorary Academy Award of Oscar in 2010 for lifetime achievement. He had a sense of humor about his carrier and he titled his 2005 memoir “The Good, the Bad, and Me: In My Anecdotage.”

Why am I blogging today about him? First, because he used to be one of the best actor ever secondly, he had some connection with the market, namely in his final film role, Wallach had a key part in Oliver Stone’s “Wall Street: Money Never Sleeps” (2010) movie. In that movie Wallach is a wise old banker who predicts a financial apocalypse. There was a great performance from 95 year-old Eli Wallach as Jules Steinhardt, a veteran money man who goes back to the original Wall Street crash.

We can learn from his professional approach. He had the following famous quotes about his attitude. His commitment to the acting is a great pattern for us either how being better trader:

• “I've learned that life is very tricky business: Each person needs to find what they want to do in life and not be dissuaded when people question them.”
• “Well, I go to the theater today, and its curtain - there is no curtain in this play; the lights go down and go up - and we start. And I live this character for two hours. There are only two of us in the play. And It's a complete experience.”
• “Everyone thinks acting is easy. It's far from easy, but it's the most gratifying thing I do.”

The BFM Assets Team.

DOES THE VIX INDEX FORECAST ANYTHING?

The Marketwatch yesterday posted an article with this title “The father of the VIX.” I guess that is a good opportunity to talk a little bit more about the VIX fear gauge index.

The VIX is a mathematical equation derived from S&P500 options and traded on CBOE and a ticker for the Chicago Board Options Exchange Market Volatility Index. Mostly referred to as a fear index and represents the market's expectation of stock market volatility over the next 30 day. The idea of the VIX was first described by Menachem Brenner and Dan Galai in 1986. And, seven years later in 1993 the “the father of the VIX” Robert E. Whaley, a professor at Vanderbilt University developed the VIX for the Chicago Board Options Exchange (CBOE).

The VIX is generally called as an inverse indicator and the Trader’s Bible says the markets crash when the VIX is low. But, and here comes the big but. I have so many concerns about this preconception. As always on the market something works for a while after doesn’t work that is the same with the VIX too. If that would be true this year the market needed to go down because of the low VIX levels, but all US indices are at their historical highs. Just using your logic in this concept the markets should have been crashing every week for past couple years.

And here come the problems. Everyone and their grandmother know about the VIX now and watching it like a hawk. Secondly, if it would be so simple forecasting the crash everyone could make money. In my view the low level of VIX only show people are comfortable that nothing serious will happen in the next one month. That’s it nothing more, so it is more a sentiment indicator. And as we know the mass could be at most cases wrong. So, I have a bad news for VIX believers the VIX is not an indicator of anything having to do with forecast crashes.

Recently the VIX at historical law and many investors are worried about that VIX hitting multi-year lows. Should we be concerned? I don’t think so. As Robert E. Whaley said “I wouldn’t be worried about it.” The VIX could be lower than 10 or 11 in the market everything possible.

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The BFM Assets Team.

BUY THE ASX200

Yes, the Australian index, recently there is a great bargain opportunity, just tonight the ASX 200 rose by 1.2%, climbing from a one-week low. Sydney index’s pivotal stock groups are the banks and miners are both jumped higher.

It was a good morning for us because we hold some significantly huge positions from level of 5,400 and gained from level up to 5,460. We have covered some of our positions this morning and reopened and kept some others because we are still very bullish on ASX200. Why?

We have technical and sentiment reasons. In terms of technical issues we see a good arbitrage deal on ASX200 the reason is that the Australian benchmark index couldn’t gain much in the last couple of weeks while US indices are gained to new records. It seems lazy the ASX200 index and lagging far behind the American benchmark indices.

All in all to own ASX200 is a good bargain because it is cheap and quite far from the previous tops 5,500 (April 2014). Therefore we are expecting more gains on the long side and we are so optimistic about that the index needs to hit its previous high at 5,565. That is only question of time. It seems the futures will close tonight above the resistance level of 5,440 so this breakout opens the way up to that area.

The BFM Assets Team.

MARKET GOES UP LIKE AN ESCALATOR AND GOES DOWN LIKE AN ELEVATOR

Yesterday was a great example of that old rule. Right after the opening the SP500 briefly touched an intraday record at 1,966 then escalated the sell-off in the late session and was falling further the indices most points in more than a month. The Dow suffered a triple-digit decline. The correction started at Italy vs. Uruguay match, so the traders were more interested to sell than watch the game.

Is it only a profit taking at the end of the quarter? Nobody knows. But for sure, yesterday was there was a severe correction. But on the other hand that might bring a great opportunity for a bargain hunting in July.

• Dow -0.70% 
• Nasdaq - 0.43% 
• S&P 500 - 0.64% 

And at the same time the VIX gained with double digit as we anticipated couple of days ago here at this blog.

• VIX 12.13, +1.15, +10.47%

Is this correction a drama? No, this is part of this business and I heard that the sun will still come up tomorrow again. The resistance on DJIA is still at 16,945, until that level don’t do anything just wait and watch like a great elk hunter.

The BFM Assets Team.

THE FLAT MONDAY

It was totally flat and boring yesterday all US indices. Stocks were flat like a pancake. The Dow Jones index snapped its six-session winning streaks. U.S. big cap stocks fell and SP 500 dropped for the first time in seven sessions. After a great last week when SP500 index rose 1.4 percent, the most in two months, closing at an all-time high. The DJIA also ended the last week at a record level.

More detailed:

• S&P 500 -0.01% 
• Dow -0.06% 
• Nasdaq +0.01% 
• Russell 2000 -0.3%

After the record levels reaching last week, the market took a breath and consolidated slightly. This Monday was a perfect pattern of no volatility at all. The SP500 has not had any daily move of more than 1% since beginning of April. Since that time the SP500 gained 8.1%.

Narrow trading ranges mean also low volatility, which is good on one side because most people couldn’t burn their money. But on the other hand it means the rapid movements need to come shortly, the eruptive period is getting closer and closer. The low trading ranges are mostly followed by bull rally.

In technical perspective the DJIA is in a range now and could come more consolidations. The key resistance level needs to be taken 16,940 being more bullish again.

The BFM Assets Team.

PRAYING AND HOPING IN THE TRADING

DOW 17,000!!! Exactly not yet, misses 10 points, the new record is 16,990. This morning the DJIA futures got really close to 17,000, only 10 points missed.

There are two interpretation of this level. Some say it is too high and overbought and some say it is not high, there is still more place to gain. I am supporting the second option. Until we don’t see any fact which proves the bulls are dead and the bullish trend is not violated we are only on the long side.

Just a short story about the clashes of two cultures:

I have a good friend who told me around 10-14 days ago he shorted SP500 and DJIA because it was overbought, so needs to come some corrections. I argued with him and I said honestly I doubt that and last Friday I had a discussion with him again and he still expected the correction and holding his short positions. I don’t know how much money he had lost, but my concern is that he is stuck to his idea against all the facts.

I do really hope hope by this morning he revises his view and close all the shorts and not hoping anymore in a miracle. He has been merely waiting for some kinds of magic. But, praying and hoping works in the churches not in the markets. I remember well when I was rookie I prayed and asked God thousands of time, please help me turning out with profit on that certain position. I did this quite regularly, each week maybe each day because I was sitting quite often in a loosening position and I was desperate and I had anger about the market.

Since I accepted the rule of the market - that means it is always moving in trend and don’t argue with that momentum, just follow that. Don’t try to sail against the major trend. Don’t be on both sides of the market because there is only one winning side of the market, the Jedi-side, the side of the direction a trend.

If you understand that, you are going to be much better trader and your life as a trader will be more easy and pleasure. Don’t try to catch both sides, because the market in a bullish trend could be far more irrational than you and I can be solvent.

The BFM Assets Team.

BULLS MAKE MONEY ON OIL

WTI Crude Oil is steadily over 100$ and stays there since beginning of May. We started to buy at 92$ in January and closed our potions on the way up to 107$. This is the highest price since July 2013. Thursday continued the gains and headed for a second weekly gain.

The oil has a Ph.D. in International Realtionship & Politics, always reacts so sensitively on geopolitical turbulances like it was in March the Russian invasion in Krim Peninsula and in June, the Iraq military clashes.

Yesterday Nymex oil futures settled higher again and extending gains in the late trading session after President Barack Obama said the U.S. would send military advisers to Iraq, but that forces would not return to combat. The oil loves the military activity close to the oil fields, mostly in Middle East and Nigeria.

All in all I doubt that this great bullish rally from 92$ within couple of month is only because the geopolitical fears. I guess the world economy is doing better which creates bigger energy demand and with the supply concern that is a good combination to the bullish momentum. Our target was stated in May was 110$ we are so close that level and we still keep our bet. 

Technically just last week broke out from the flag pattern the WTI Oil.

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The BFM Assets Team.

YELLEN AND HER FAMILY ARE LONG

It seemed after the sell off week that the traders are just sitting on their hands and staying sidelines until yesterday. But finally the market erupted and turned everything green, all indices got closer again their pervious historical tops or closed at new records. As it was expected the trading was super quiet before the FED announcement. Stocks continued to strengthen as Yellen’s speaks, and the S&P 500 was on pace for a record close.

• S&P 500 +0.8% to new record close around 1957
• Dow +0.6% 
• Nasdaq +0.6%
• Russell 2000 +0.6%

This is a great chart how the big guys think about the market, it tells exactly that there is no consensus in the sentiment that is a good sign for more bulls. That will be the end of rally when they would be agreed on everything. Anyway, our forecast or bet by the end of 2014 is 2,050.

The BFM Assets Team.

IS EVERYBODY WATCHING THE WORLD CUP?

Because the stock markets are so boring and quiet. The noise is zzzzzzzzzzzzzzzzzzZZZZZZZZZZZZZZ on the floor. The volume is pretty low and around 5.7 billion shares changed hands yesterday on Wall Street, 7.5% below the three-month average. The US benchmark indices are at range and couldn’t retest their tops and couldn’t drop significantly neither.

U.S. stocks ended Tuesday modestly higher, with the gaining for the third consecutive day and Russell 2000 was the winner once again as we stated couple of weeks ago that Russell is best bet. The small cap index closed at its highest level in more than two months.

• S&P 500 +0.2%
• DJIA +0.2%
• Nasdaq +0.4%
• Russell +0.8%

There is another interesting pattern. Remember when Tuesday was the winner? In May everybody was talking about this must be a new strategy, buy Tuesdays. And, what is it now? In the last month Tuesday was mostly a plunging day. Once everyone noticed, it stopped working further. That is the magic of the market.

The BFM Assets Team.

THE NEW FEAR IS IRAQ AND UKRAINE

For new comers, there is more increased violence in Iraq and further geopolitical and economical problems occurred in Ukraine. The investors are more concerned about that black swans are circling around.

But against all fears the market gained again modestly yesterday after a choppy session. It seems the market still wants to stay in RISK OFF mood and try to ignore the geopolitical issues. Monday the financials and industrials sector stocks are leading the losses.

The close:

• S&P 500 +0.1%
• Dow +0.03%
• Nasdaq +0.2%
• Russell 2000 +0.4%

Russell, as always on green days, over performed the other US benchmark indices. That is a clear and obvious sign of the healthy and bullish momentum might be extended in the following couple of days.

The markets are looking for a direction after the sell-off week and still hesitating about when to kick off a new rally. Recently the S&P 500 is in a pause mode. But, all in all against all war concerns of Iraq and turbulence in Ukraine the indices stay close to the their record levels which is strengthening further the bulls.

From the technical standpoint SP500 last night closed above the key resistance level of 1,936 so now the road is opened up to 1,950. Most probably the index is going to retest that key resistance level today or tomorrow.

The BFM Assets Team.

THIS IS A BUBBLE AND OTHER CONCERNS... BLAH BLAH BLAH

Yes, against the obvious fact most of the traders are still expecting some huge correction and plunge. I just collected some forum comments below, from Friday:

• "The disaster is at the door"
• "We are going to repeat 1929"
• "Stocks are not safe bet anymore"
• "Only the idiots buy the stocks at this level"
• "Caution! Correction is ahead"
• "What goes up must come down"
• "This Ponzi scheme is about to blow itself up quite soon"

Funny, isn’t it. The market is in a great rally mood and most of us short selling the market, while the S&P 500 setting 19 records in the first half of 2014. Against this fact there has been so much fear about a potential correction. Why? Why do we do stupid things? Why are we short in the market if it goes week by week higher and higher? I will never understand that.

On Friday US benchmarks rose modestly again, but trading was choppy due to concerns about Iraq. This week all indices made correction after a great long rally. This is not a disaster, try to understand that the market needs to heal and take a rest time by time. This is part of this business and don’t argue with that.

• SP500 0.7% loss over the week
• DJIA lost 0.9% over the past five days
• Nasdaq declined 0.3% over the week

The BFM Assets Team.

SENTIMENT IS MORE BULLISH

That is normally a red flag for us not being bullish or stay modestly bullish. The AAII Investor Sentiment Survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months; individuals are polled from the ranks of the AAII membership on a weekly basis. So if the retails are optimistic usually we turn pessimistic and vice-versa.

The bullish sentiment this week is over the mean 39%, which might be a warning signal some consolidation could come in the following ten days in the US markets. Jumped more than 5% since last week and has gained from February lowest level of 28%.

This week’s results:

Historical averages:

• Bullish: 39.0%
• Neutral: 30.5%
• Bearish: 30.5%

If you take a look at this chart below the long sentiment in the whole three months of March, April and May it was below 39% average and this week jumped over that 39% first time after three months, which is not a disaster and the market could go up still much higher, but be more suspicious. The trees never reach the sky.

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The BFM Assets Team.

DOW IS FLIRTING WITH 17.000

At least for one day the US rally has been stopped after five day winning streak. They haven’t lost their ground only took a slight consolidation after a couple of weeks hot streak rally. Yesterday U.S. indices fell the most in three weeks, with the Dow halting a five-day rally and was pulling back from the previous day’s record close. The Dow stopped its rally and longest hot streak since last July.

• Dow 16,844 -102 -0.60% 
• Nasdaq 4,332 -6 -0.14% 
• S&P 500 1,944 -7 -0.35% 

The DJIA easily could back test the 16.700 support level.

The bullish trend is not violated at all. The S&P 500 over the past 38 days hasn't had one gain of >1%. That is a slow and steady gaining without any bubble pattern. The S&P 500 since February rose 12%. Sorry, are you bear? You were and are wrong. 

The volume was remarkable low Wednesday and we are expecting lower volumes further because TODAY STARTS THE WORLD CUP!!! Get to the TV and have a beer.

The BFM Assets Team.

ENJOY THE RALLY

That’s it. That’s all that we have to do. The SP500 closed again at historical high level of 1,951. Crazy, only 49 points difference from the 2.000 points. Yesterday US markets finished marginally higher. Only SP500 slipped Tuesday, halting a four-day streak of record closes and has advanced 7.4% since a low on April 11. The Dow closed at an all-time high and made its 10th record close this year.

• Dow 16,946 +3 +0.02%
• Nasdaq 4,338 +2 +0.04%
• S&P 500 1,951 -0 -0.01%

The SP500 has risen for 32 months without any decline bigger than 10%. That is quite significant versus the average of 18 months since 1945. The SP500 is up 5.5% for the year to date. Overbought? I don’t guess so. This percentage doesn’t tell me it is a bubble, not at all.

On the other the short term risk has increased while the VIX dropped 5.9 percent last week to 10.73, the lowest level since February 2007. That guides me being more suspicious and reducing the exposure, but being bullish further. Honestly we started to buy the VIX last week because at this level is reasonable to own it.

The BFM Assets Team.

WHERE IS THE CHEAP OIL?

I don’t know, but it has gone with the wind. This year analysts and anchors always found something why the oil jumped higher and higher again. First, was the severe winter conditions in US then the Russian invasion of Ukraina and now the summer and the holiday season. Maybe they are right, maybe not in terms of fundamental, but the funny thing is the weather and Putin should be a great technical analyst because they always react at key support and resistance levels in the oil chart.

The oil has a PhD in economics and recently seems the recession is over all macro numbers are getting better quarter by quarter in the world economy. That means upside power and more upside potential for the oil in middle term. On the weekend, China reported trade surplus and Japan’s GDP beat the expectations, which indicates both economies are in good condition.

First time since last August the WTI Oil futures climbed above $104,50 a barrel yesterday. The market shows very strong bullish sentiment. Monday the price jumped up from $102,70 to $104,50. Gained 1,7% within a day on the NYMEX the WTI Crude Oil. In terms of dollar gains were the largest in about two months.

In terms of technical aspects the WTI Oil is in a triangle recently, and pretty close to the break out. If it would be taken within few days the next resistance level is at $114, so there is another $10 gap on the long side.

The BFM Assets Team.

GREENLAND – NOT REDLAND

Not red at all. All indices closed the week in green and closed at their weekly highs. Rallied the whole last week the US markets and gained further to their record territories. After, that massively strong week the Russell turned also in positive territory in YTD.

• Dow 16,924 +88, +0.52% 
• Nasdaq 4,321 +25, +0.58% 
• S&P 500 1,949 +9, +0.44% 
• Russell 2000 1,165 +0.98%

I love to see in the trading forums most of the guys out there are still expecting the big correction and try to catch the short side. The S&P made its 18th record close of this year and its third straight record finish. So these sell runners don’t understand the market at all. This is a brutal bullish market who is the idiot who sells this momentum. Just look at the chart and open your eyes and just buy, as the legendary Livermore said “Never argue with the tape.”

The Russell2000 made 2,7% weekly gain and recovered faster than the other US benchmark indices. Why? Because as we forecasted couple of weeks earlier, the index was pretty undersold and undervalued so was a great bargain hunting opportunity some weeks ago. The worries by now have gone regarding Russell2000. Just remember a while ago most analysts were complaining about the Russell and now it is the best performer US index. The old rule works again, the analysts were wrong and the market was right. That is an old boring statement, but still more than true.

We started to buy the Russell at level of 1,100 and now the small cap index is at 1,165. Our next target is at 1,190 as a key resistance level.

The BFM Assets Team.

AAII SENTIMENT

Yesterday it was issued again the weekly AAII investor sentiment survey. Let’s take a look at the retail investors, are more bulls or bears?

• Bullish: 39.5%, up 3.0 points
• Neutral: 38.3%, down 2.1 points
• Bearish: 22.2%, down 1.0 points

The optimism among American individual investors is above its historical average for the first time in 12 weeks. Bullish sentiment, expectations that stock prices will rise over the next six months, rose 3.0 percentage points to 39.5% since last week. That is a significant gaining and the first time optimism is above its historical average of 39.0% since March 13, 2014. In May the bullish attitude gained a lot from the 28% level.

The neutral sentiment, expectations that stock prices will stay essentially unchanged neutral sentiment remains above its historical average of 30.5% for the 22nd consecutive week.

Bearish sentiment, expectations that stock prices will fall over the next six months, declined 1.0 percentage points to 22.2%.

The spread between bullish and bearish sentiment (the “bull-bear spread”) widened to 17.3 percentage points. This is the largest bull-bear spread since February 27, 2014.

In May when the pessimism was at the highest level the market made a great rally. All in all, now the investors are more optimistic about the future so we need to more pessimistic at the same time. It always concerns me if there is a consensus in one way direction because those days come the surprise and pain. So my advice is to buy the pessimism and not the optimism.

The BFM Assets Team.

INDEXES VS. STOCKS

Quite often I am asked why I prefer index buying instead of single stocks. I do believe I have some reasonable answer for that and here below I am gonna summarize my approaches.

1. Hard to collect the relevant information

You are aware that I am so bullish on the stock market. But honestly I never buy any single stocks just indexes. Cause I don’t like the luck in the trading and investing. In the single stock trading I see many risk, namely I don’t have enough relevant information about that certain company. Is there any crazy guy in the board, is there any risk behind the curtain, is there any risk on the management ... etc. On one single stocks I cannot see the risks well, but on the indexes I just need to open FT or WSJ and read the relevant information in 20 minutes about DJIA or DAX. You will not find a simpler solution to diversify and reduce the risk with indexes. Honestly I don’t need to know anything about the single companies at SP500, what I only need to have is a general view about the direction of the market.

2. Volatility

The volatility is much bigger on single stocks than on indexes. You can make a fortune on 3D printing companies this year over 100-200% profit. I am happy if you did that. Or if you bought Tesla or Starbucks you have made over 50% in this current year. But never forget this is an optimal scenario, but sometimes will come the worst case scenario when you can lose 50% easily on some single stocks. Just remember for Apple, Enron, Arthur Andersen, Nortel ... etc. On stocks the volatility is much bigger than on indexes that is the reason why I am buying only index. I can’t do 100-200% per year, but honestly I don’t really want to do that because it is too risky. The flip side is that I cannot afford to lose 50% neither. If you are super lucky, never forget will come the super unlucky days too. That is the behaviour of this business.

3. Which indexes we trade?

We only forcusing on the flagship indexes and don’t care about the small composites. We trade DJIA, SP500, Nasdaq, FTSE, DAX, CAC40, Nikkei, Hang Seng. There is no sense to trade belgian or greek markets because all the markets are correlated so sooner or later the arbitrage is disappearing.

These are my biggest reasons why I am trading indexes against the stocks. But I have a piece of good news there is one huge common thing. The market is so bullish. So bear in mind and buy the dips.

The BFM Assets Team.

WHEN DID THE BULL MARKET TRULY START?

For sure, everybody is interested more on the question “when ends”, but before to answer that question first make sense to figure that out when was exactly started the run up.

Vast majority of investors are pretty concerned because five years rally passed, but in fact it is not true that is only a market myth that this bull market started in 2009. Actually, until the middle of 2013, SP500 was moving in a giant sideways channel. The bull market just started in 2013. Look at this chart below.

So here it can come the next question, when ends the rally? Sorry folks, I have bad news, I don’t have a faintest idea, but… – here comes the big but – if you look at the chart above you can easily figure that out of this period is not the end of the rally, it is only beginning of the bullish rally. The breakout after 14 years sideway moves just happened last year. SP500 has just broken out in 2013 September.

The chart below shows the sixth year of uptrend means nothing and doesn’t mean bubble at all which needs it burst shortly. It is only one of our bias. It seems for us too long, but it doesn’t really, if you look at the chart below pretty easy to pick up the point that an average rally period exists over 150 months and we only passed in bullish mood 61 months.

When the Dow is up 68 points in the last six months, is the talking about bubbles truly reasonable?

The BFM Assets Team.

ONE CHART, WHY WE ARE NOT IN BUBBLE YET

Many big and smart guys, not only small investors, have huge concerns about this current market rallies. Just think about David Tepper’s warnings two weeks ago at the SALT conference in Las Vegas. Here is another guy from yesterday Steen Jakobsen, he is the Chief Investment Officer of Saxo Bank, stated “I am confident on is the fact that the second half of this year is going to see a 30% correction from the top.”

I fully doubt that. I do believe this market is not yet in bubble, the bullish pattern is still healthy and I don’t expect any relevant bigger correction this year. Most of the moaning guys are that sceptical because the market has been coming up too much. Yes, true the bull market is in its 5th winning year in row, but I guess the stocks still have room to gain more.

The chart (by Bespoke Investment) brings a clear evidence that US market could be bullish further easily. Over the last ten years, the SP500 is up around 65%, this might seem too much, but benchmark index’s average rolling 10-year return since 1937 has been 103%, so the current 10-year gain of 64.8% is only two-thirds of that average. That chart suggests the bull run most probably will continue.

The BFM Assets Team.

THE GREEN MAY

Investors finally ignored the old mantra „sell in May and go away”. U.S. stock market finished the month with the biggest monthly gain since February, as all the main benchmarks ended the week higher. This May was a great month for the US and European stock markets. U.S. indices made their biggest monthly gains since this February, SP500 gained more than 2% and closed and absolute historical high at 1.923. The gain is even more impressive if we know came to gain after two months losing streak and gained only in May more than 3.1%. Both the Nasdaq and DJIA turned positive for the year of 2014. Nasdaq firstly gained in three months.

May results:

• SP500 + 3,1%
• DJIA +0,8%
• Nasdaq +2.1%

European markets are in seven weeks gaining streak and the sentiment is so bullish in the south countries too, like Italy or Spain. All benchmarks are performing well and made YTD significant gains.

May results:

• Stoxx 600 +1.9%
• DAX +3.5% at a record closing high
• FTSE’s best level since late December 1999

Where are the tops of S&P500? I don’t have a faintest idea, what I only know is that this is a brutal bullish market. Don’t argue with this fact and fight with the market. SP500 is up about 50% in two years. Doesn’t seem any resistance level because the index is in historical high territory so might be the next stop only in the second part of 2014 the magical 2.000. Let’s see.

The BFM Assets Team.