Europe Claims It’s “Recovering” — The Charts Say It’s More Like Crawling Out of a Hole

Getting tired of the trade

Europe is declaring victory over recession while still crawling out of a hole. Capex twitches higher, confidence is “less terrible”, and inflation is quiet—for now. Fundamentals look anything but fixed. We are still long the "less bad" trade but we are getting impatient. We need to see some real MoMo soon or this love affair is over. Anyhow, here we again try to focus on the positives.