Many of us know what Market Cycles are but, do you understand how to trade them & what to expect?
Here with SPY on the 1hr chart. Prices entered a range from May 27th to Jun 9th. If read correctly, you should have prepped to get short on the the support break of that range.
That range was considered a distribution area & once it broke, you should expect a trend...
Emerging Market equities have underperformed the US for the last decade, and has now reached past lows during the dot-com bubble.
Looks poised for another reversion in the next 10 years!
EM is cheaper (has already fallen mainly due to weaknesses in Chinese equities)
DXY likely to weaken in the long-term, which should benefit EM equities.
Monthly RSI also seem...
If you are long gold miners, juniors seem to be at a better relative position to GDX. Bouncing off of medium-term support (since 2015 gold bull run).
Also seeing some bullish divergence on 1W RSI.
Shall cap relative performance to Large cap is showing a great opportunity.
REcently we have also seen the small caps valuation is as low as GFC levels, which is another indicator of good long-term buy opportunity.
Small caps (IWM) performance to self is not quite as attractive, so be aware. This could simply be an opportunity to do a long-short spread between...
recently bouncing off of potential trendline support.
RSI is also at very attractive levels.
HOWEVER, be aware that dark blue line support has historically been more enduring. Which would be the buy point should we enter recession in the very near future.
Nonetheless, a good place to start adding long-term positions. Also, relative performance to US and...
EEMA is looking quite promising - the recent drawdown mostly from China fears seem overblown and ripe for reversal.
Emerging markets as a whole (EEM) is also more promising relative to US on (1) relative performance and (2) relative valuation standpoint.
Some risk in the short term because we are nearing downtrend resistance since 2021.
However, long-term looks promising as we did a fake breakdown of 2011 support.
China easing with COVID restrictions and loosening crackdown on tech (CQQQ) can also serve as potential fundamental support.
As long as we don't hit a recession like in 2007 or in 2020, we are at historical trend support. good place to buy.
Invalidated with weekly/monthly close below blue trend line.
EFA seems better than Europe as a whole.
