I have been wondering when we would start to see stories like this.
The headline: "Morgan Stanley cuts global growth forecasts". If only they were reading TheTechnicalTake or employing a price based approach, they certainly would be ahead of the curve. I know "technical analysis" is considered voodoo, but maybe I practice a different kind of medicine! I don't think it is luck (but you never know -- do you?) or due to my "superior" (definitely not) ability to "read the tea leaves". What I do well is apply the same objective analysis to the price movements regardless of asset.
So for the record on June 24, 2011 I wrote "Call This a Warning Sign" on the high likelihood of a top in the i-Shares MSCI Emerging Market Index (symbol: EEM). Figure 1 is a monthly chart of EEM, and this is consistent with a market top.
Figure 1. EEM/monthly
So for the record on July 18, 2011 I wrote "Another Warning Sign" on the high likelihood of a bear market in the i-Shares FTSE China 25 (symbol: FXI). Figure 2 is a weekly chart of FXI, and the analysis is still the same. Bear market.
Figure 2. FXI/ weekly
Lastly and for the record on August 14, 2011 I wrote "Dr. Copper and Global Economy Look Vulnerable". Bingo! I am glad Morgan Stanley agrees with my analysis. Not really. I could care less. I do my own thing.
In summary, a price based approach to navigating the financial markets remains an effective form of market analysis.