July 25, 2012
With global stock markets continuing to struggle, top Citi analyst Tom Fitzpatrick puts KWN readers ahead of the curve on stocks, the US dollar, euro, bonds & more. Fitzpatrick, a 28 year veteran and top analyst at Citibank, which has $1.3 trillion in assets, sent KWN some extremely powerful charts and notes. Below were his comments with five key charts:
Tom Fitzpatrick latest report:
Nearly all levels we were watching at the end of last week have given way, suggesting further market turmoil ahead.
Europe: The key support level on Spanish 2′s versus 10′s at 150 bps has been breached with Spanish 2-Year yields making multi-year highs. Expect the curve to now test 60 basis points. The last time this happened was in early Nov 2011 when we also saw other major markets turn for the worse. EUR/USD for example fell some 600 points that month. The support level on EURUSD is at 1.1876 (2010 low) and then the channel base at 1.1650.