I am not going to pretend to have played this well so far. I have not. Since identifying the bearish pattern on the weekly chart and a target zone to…
The Emerging Markets (EM) have been weak over the last month as the USD made a recovery rally. Today USD index is making a drop below the 50 day moving averages and the upside target of 97 we had noted (currently at 96.20).
This brings into focus the prospect of a ‘C’ leg of an A-B-C rally in commodities that was reviewed in NFTRH 345 and also the prospect of the EM fund EEM maintaining its series of higher highs and higher lows.
We noted in NFTRH 337 that the EM's were attempting to break through resistance. While this is just short-term stuff (longer-term charts remain neutral at best) the first 3 days…
There are a lot of things in play today, including a notable rise in the gold-silver ratio concurrent with USD (finally, these two are both working together, which would be a component of our favored macro plan for future economic contraction, stock market troubles, etc.). But the point of this update is to further the point we made last week about the Emerging Markets’ potential breakdown nominally and in relation to the US market.
Since we routinely cover the emerging markets and also their ratio to the US stock market, I thought I would update some notable changes.
With reference to an earlier public post showing the EEM breakout today, you may recall that I use EMF for Emerging Market investment and TDF for China/Asia. Both are managed by Marc Mobius of Templeton.