Recently two things were mentioned in NFTRH.
- I had an interest in India due to a nice chart pattern, with the iShares INDY on the watch list.
- I planned to shy away from country ETFs, with the possible exception of the China 25 FXI.
Pardon my error. At the end of a long letter I may not always cover every minute detail. INDY was added to the brokerage portfolio today for the reason of its chart pattern and because its central bank has been one of the few going against the inflationary tide. With a theme of changes coming for 2014, I think this one is worth a shot for my purposes.
Interestingly, after surprising markets and raising interest rates in the face of inflationary pressures, India’s Central Bank left rates unchanged, thus surprising markets again going the other way. I like that CB chief Raghuram Rajan is getting out ahead of inflation, unlike nearly everyone else. In September I posted about him and his unique philosophy. So now, if for no more than a trade, it is time for me to put some money with him.
In short, I trust him and I trust that he remains vigilant. This could well turn out to be an investment, because this is one CB that has the right idea for the longer term.
Getting to the technicals, a ‘stop loss’ on this move would be a loss of the moving average cluster, which currently acts as support. If the pattern holds up, the measured target is 29.