Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

USD shows lead lows versus IDR, THB and INR that are trending higher already ahead of the likes of the SGD and KRW. USD/ZAR is making a macro low near 14 that has our attention and will see the EM complex follow this lead.DXY staged an impressive reversal Friday off of the 90.40 buy support (trendline and price) but our attention is centered around more bullish macro signals unfolding in the weekly cycle.A dollar low align nicely with our call for an SPX top near wedge line resistance. Short have been recommended in EEM and EWZ on the back of a USD low and rally cycle.

USD shows lead lows versus IDR, THB and INR that are trending higher already ahead of the likes of the SGD and KRW. USD/ZAR is making a macro low near 14 that has our attention and will see the EM complex follow this lead.DXY staged an impressive reversal Friday off of the 90.40 buy support (trendline and price) but our attention is centered around more bullish macro signals unfolding in the weekly cycle.A dollar low align nicely with our call for an SPX top near wedge line resistance. Short have been recommended in EEM and EWZ on the back of a USD low and rally cycle.

Founder

Olivier Desbarres

Exacting. Excellent. Exceeding. Exemplary.

4X Global Research

4X Global Research was founded in 2017 to provide institutional and corporate clients with the substantive research, high-quality analysis and thoughtful insight on Emerging and G20 economies and financial markets they need to make informed and timely decisions and gain an edge in their investments.

FX & Rates

The Federal Reserve has in the past six weeks diligently stuck to its “patience until substantial further progress is seen” monetary policy mantra. Its “reward” has been range-bound US Treasury yields, a slowly depreciating Dollar and a metronomic rise in US equity indices, with all three financial markets exhibiting only modest volatility.Since 19th April the Dollar NEER has depreciated a further 0.6% to within striking distance of a 14-week low, in line with “our core scenario that the Dollar will indeed lose further ground”. We remain bearish the US Dollar, a theme we will explore in greater detail in forthcoming FIRMS reports.Fed Chairperson Powell would argue that keeping US Treasury yields in check has been a worthy achievement given the backdrop of President Biden’s ambitious fiscal stimulus plans and accelerating US economic growth and rising domestic and global inflation. A GDP-weighted measure of headline CPI-inflation in 32 major economies rose to 2.1% yoy in March from 1.4% yoy in February, the largest monthly increase since December 2009. But core CPI-inflation in developed economies rose only marginally in Q1 2021, with the rate of inflation in March of 1.2% yoy below its 10-year average of 1.5% yoy.While backward looking these data they may explain in part why developed central banks, with the exception of Bank of Canada, have so far felt justified in keeping their policy rates on hold and the modalities of their asset-purchase programs broadly unchanged. In the past month currencies in Emerging Europe, Africa and Latin America have been main beneficiaries of still reasonably low US yields, weakening Dollar, burgeoning global growth and robust risk appetite. The timing of this EM rebound has coincided with our forecasts.Non-Japan Asian currencies have lagged, which we attribute in part to portfolio outflows and NJA central banks keeping a close eye on a flat-lining Chinese Renminbi.This differentiated EM currency rally will extend near-term, in our view, but high-yielding EM currencies in particular remain vulnerable to any spikes in US and other developed market government bond yields and more generally market volatility.

The Federal Reserve has in the past six weeks diligently stuck to its “patience until substantial further progress is seen” monetary policy mantra. Its “reward” has been range-bound US Treasury yields, a slowly depreciating Dollar and a metronomic rise in US equity indices, with all three financial markets exhibiting only modest volatility.Since 19th April the Dollar NEER has depreciated a further 0.6% to within striking distance of a 14-week low, in line with “our core scenario that the Dollar will indeed lose further ground”. We remain bearish the US Dollar, a theme we will explore in greater detail in forthcoming FIRMS reports.Fed Chairperson Powell would argue that keeping US Treasury yields in check has been a worthy achievement given the backdrop of President Biden’s ambitious fiscal stimulus plans and accelerating US economic growth and rising domestic and global inflation. A GDP-weighted measure of headline CPI-inflation in 32 major economies rose to 2.1% yoy in March from 1.4% yoy in February, the largest monthly increase since December 2009. But core CPI-inflation in developed economies rose only marginally in Q1 2021, with the rate of inflation in March of 1.2% yoy below its 10-year average of 1.5% yoy.While backward looking these data they may explain in part why developed central banks, with the exception of Bank of Canada, have so far felt justified in keeping their policy rates on hold and the modalities of their asset-purchase programs broadly unchanged. In the past month currencies in Emerging Europe, Africa and Latin America have been main beneficiaries of still reasonably low US yields, weakening Dollar, burgeoning global growth and robust risk appetite. The timing of this EM rebound has coincided with our forecasts.Non-Japan Asian currencies have lagged, which we attribute in part to portfolio outflows and NJA central banks keeping a close eye on a flat-lining Chinese Renminbi.This differentiated EM currency rally will extend near-term, in our view, but high-yielding EM currencies in particular remain vulnerable to any spikes in US and other developed market government bond yields and more generally market volatility. 

Fixed Income and Currency Strategist

Gautam Jain, PhD, CFA

In this note, we look at the underperformance of Brazil's long-end rates relative to the currency, which has rallied significantly of late. Instead of going long rates outright, given the risks, it is better to hedge the position with the currency in our view.Separately, the attached file is a snapshot of EM 10y rates market, which we produce daily, and where we seek to identify the leaders and laggards among countries by comparing the performance of each to its history as well as to other countries based on their respective betas to the broad market.

In this note, we look at the underperformance of Brazil's long-end rates relative to the currency, which has rallied significantly of late. Instead of going long rates outright, given the risks, it is better to hedge the position with the currency in our view.Separately, the attached file is a snapshot of EM 10y rates market, which we produce daily, and where we seek to identify the leaders and laggards among countries by comparing the performance of each to its history as well as to other countries based on their respective betas to the broad market.

Rates 10y Dashboard: Brazil Rates Lag the Currency’s Rally

In this note, we compare the performance of Latin American and Asian currencies as the former had started outperforming earlier this month but the latter has since caught up. The performance gap between the two remains at its widest in 10 years.Separately, the attached file is a snapshot of EM currency market, which we produce daily, and where we seek to identify the leaders and laggards among currencies by comparing the performance of each to its history as well as to other currencies based on their respective betas to the broad market.

In this note, we compare the performance of Latin American and Asian currencies as the former had started outperforming earlier this month but the latter has since caught up. The performance gap between the two remains at its widest in 10 years.Separately, the attached file is a snapshot of EM currency market, which we produce daily, and where we seek to identify the leaders and laggards among currencies by comparing the performance of each to its history as well as to other currencies based on their respective betas to the broad market.

FX Dashboard: LatAm FX Outperformance Versus Asia Did Not Last

As the Canadian dollar (CAD) has rallied following the hawkish surprise from the Bank of Canada, we go over the drivers behind our trade recommendation to buy the Mexican peso vs CAD and recommend holding the trade.Separately, the attached file is a snapshot of EM currency market, which we produce daily, and where we seek to identify the leaders and laggards among currencies by comparing the performance of each to its history as well as to other currencies based on their respective betas to the broad market.

As the Canadian dollar (CAD) has rallied following the hawkish surprise from the Bank of Canada, we go over the drivers behind our trade recommendation to buy the Mexican peso vs CAD and recommend holding the trade.Separately, the attached file is a snapshot of EM currency market, which we produce daily, and where we seek to identify the leaders and laggards among currencies by comparing the performance of each to its history as well as to other currencies based on their respective betas to the broad market.

FX Dashboard: Update on Mexican Peso Vs Canadian Dollar Trade Recommendation

Brazil

The Brazilian real is the official currency of the Federative Republic of Brazil.  

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BRL (USDBRL CURNCY)

USD Low Ties in with Risk Peak

DXY staged an impressive reversal Friday off of the 90.40 buy support (trendline and price) but our attention is centered around more bullish macro...

Thomas Schroeder

Something Has Got to Give

Treasury yields have been range-bound despite global backdrop of stronger growth and rising inflation. USD weaker, equities and (most) EM...

Olivier Desbarres

Rates 10y Dashboard: Brazil Rates Lag the Currency’s Rally

Brazil's long-end rates have underperformed as the currency has rallied. Instead of going long rates outright, given the risks, it is better to...

Gautam Jain, PhD, CFA

FX Dashboard: LatAm FX Outperformance Versus Asia Did Not Last

We compare the performance of Latin American and Asian currencies as the latter has caught up to the former. However, the performance gap between...

Gautam Jain, PhD, CFA

FX Dashboard: Update on Mexican Peso Vs Canadian Dollar Trade Recommendation

As the Canadian dollar (CAD) has rallied following the hawkish surprise from the BoC, we go over the drivers behind our trade recommendation to buy...

Gautam Jain, PhD, CFA

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