Have a great day all
EEM which can be thought as "Emerging Markets" looks fucked to me. Short this. Baring a sudden trade deal this week (unlikely), EEM could see sub $40. The puts I purchased last week have already doubled in value. :) From a TA standpoint, let's review. Price is below the green line (bearish) but bounced off support in the last 10 minutes of the trading...
The iShares MSCI Emerging Markets ETF (EEM) is on bearish 1W price action (RSI = 41.481, Highs/Lows = -1.8644), repeating a pattern last seen in April 2011 - May 2012. During that period the price was rejected at 44.90, crossed below the MA50 and MA200 and found support just over the 0.786 Fibonacci level before recovering 100%. We expect a similar price behavior...
This is an excerpt from MACRO BRIEF: Hong Kong Dollar Strengthens on Rate Spike originally published March 10, 2019. The short-HKD trade is nearly consensus, which reminds me of the short-yuan trade a few years ago that was largely snuffed out by the PBOC. Problem here, though, is the HKMA's attempts to draw in HKD inflows have been superficial at best....
EEM has fully broken out of flag formation and of the next months will rise completing the 5th wave!!!
EEM is mostly made up Chinese A-shares meaning this ETF is primarily dependent upon data coming out of China. Recent data is quite promising while the US-China trade war negotiations continue to show positive developments. Exports data coming out of China is positive this morning, moreover the US will not keep on putting pressure on China politically according to...
Have a great day all!
Boeing has peaked for now on the news that 20% production will be cut.
LYFT threaten to sue JPM over short-selling, yes, a company that loses money and sold for $25bn!
Data out this month show slowing business activity & new orders relative to the prior month, compounded with an unexpected slowdown in wage growth, forecasting a pullback from here with a complete patterns is logic.
Date released on the 1st show South Africa to be contracting at a faster pace (worsening), express caution!
Análisis del índice EEM (Emergentes) y EWZ (Brasil).
Unsurprisingly, similar to the currency, the outperformance of the Chinese stock market vs. the S&P 500 falters when the Chinese currency can't be sustained. Not quite as direct of a relationship, but this clearly affects emerging markets, which are highly indebted to the dollar. This is visible if you go back further as well - the broad rolling emerging market...
We have rallied a long way since the lows, markets are not linear and the price will have to digest the move. What will likely drive the markets higher is earning, a contrarian but realistic outcome when you consider that wage growth is outperforming inflation by almost 3%. This, of course, would likely lead to a price rally while earnings multiples are falling!
The ECB made a clear statement that the economy is in the depths of despair (not really) and a new round of QE is necessary.
The pullback has arrived, hedge/reduce exposure accordingly and wait patiently for signs the drop has run its course.
The trend remains higher, however, its not going to be linear. Expect a pullback soon to occur for a buying opportunity around the 61.8% fib
My view of the North Korea summit failure and the path forward for equities.