 Welcome to this new news update on CMC Espresso from the Frankfurt Office of CMC Markets. On the weekend it was Goldman Sachs publishing a sell recommendation on equities. Yesterday the famous hedge fund manager Jeff Gantleig recommended to sell everything but gold and JP Morgan later in the day wrote that the medium term upside for equities is limited and equities are likely to keep underperforming most other asset classes. And even the longer term picture is not very attractive, JP Morgan added saying that one should use the current rally to ultimately sell into. It is a fact that US companies were beating expectations for the second quarter by around 20% but only because the Q2 earnings hurdle rate was low. JP Morgan thinks that the profit projections appear too optimistic for the second half and for 2017 this is a medium term constraint. Any spell of better economic data is met with the Fed opening doors to hikes which brings a stronger US dollar acting as an automatic dampener for equities. On the other hand spells of weaker data flow putting questions the earning delivery. JP Morgan thinks that this is not a great combination and after showing some strength on Friday that is another topic to watch today is the price of oil that showed some strength on Friday. It bounced off the 200 day moving average and now it dropped sharply yesterday and the Bank of America thinks that unless oil manages to credibly rebound and sustain its bounce energy companies appear to be overvalued by about 50%. Currently oil company stocks went up 100% and more in the bounce that we had in the price of oil this year. Should that bounce in the price of oil not be sustainable there is some equity and correction risk in those stocks that's what at least Bank of America thinks. Watch today if oil can hold and that is WTIU with crude oil if that price can hold $40 a barrel if it is not possible and should oil slice through $40 a barrel it is very probable that the market's attention will quickly shift back to weak oil, weak Chinese renminbi and weak credit in a repeat of a scenario that we had last summer.