Here’s an update of the ratios of some global markets to the S&P 500.
Euro 50 maintains key support. I went long euro hedged Germany a couple days ago due to an ongoing positive view of the US dollar (for a rally) and by extension, negative Euro view. In some work we’ve done in NFTRH we reviewed how on the big picture Germany has out performed greater Europe (making higher highs vs. Europe’s lower ones) so I decided not to take on the baggage of greater Europe at this time; yet, anyway.
China 50 lurks below resistance but remains constructive vs. SPX. Toronto is still a mess. I took a good profit on Russia (ERUS) today in light of adding the European consolidation (and subsequent breakout… more on this from Johnny on the spot, the Macro Tourist). So I was a genius on Russia and hope to be one on Europe too. But I was a dunce on the EMs, shorting them in support of the dollar bounce view that never seemed to come before finally stopping that bad habit several weeks ago when the ratio broke through what was then resistance. That is now important support for EEM/SPY.
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