If you look at the global equities you'd think that the global synchronised growth narrative of 2017 is back in full force - this is very far from the truth of course. In particular, the performance of the CAC40 in the last 4 months, given the uncertainties in the Euro area, is nothing short of remarkable and baffling at the same time. But the question is how long can this fairy tail continue? With the US indices fighting off their all time highs now, the probability of a significant pull back in equities is rising everyday and the CAC 40 is one of the majors that has much to give back. From a technical stand point the RSI has been showing divergence for the last 3 to 4 weeks which again indicates that the pull back is due. Needless to say that markets can stay irrational much longer than one can stay liquid and i'll take my losses if it continues to go up this week.
