• 1 hour The $90M Inflatable Rabbit Redefining Modern Art
  • 4 hours Huawei’s Fate In The Air
  • 7 hours Tesla Slashes Prices Again
  • 9 hours The Modern History Of Financial Entropy
  • 1 day Italy’s Central Bank Embraces Sustainable Investing
  • 1 day Trump Lifts Metals Tariffs To Cool Simmering Trade War
  • 1 day Researchers Push To Limit Space Mining
  • 1 day Could China Start Dumping U.S. Treasury Bonds?
  • 2 days Is Winter Coming For HBO?
  • 2 days Rise Of EVs Signals Peak Gasoline
  • 3 days Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 3 days Gold Mining Stocks Stuck In Limbo
  • 4 days Executive Order Targets Huawei Over Espionage
  • 4 days Why Now May Be The Best Time Ever To Hold Gold
  • 5 days Fake News Sinks Shares In UK-Based Bank
  • 5 days De Beers To Build $468 Million Diamond Recovery Ship
  • 5 days Moody's: Turkey Faces Possible Credit Downgrade
  • 5 days Tesla's Solar Sales Are Slipping
  • 6 days Auto Industry To Get Temporary Tariff Relief
  • 6 days Welcome To The World’s Biggest Free Trade Area
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

  1. Home
  2. Markets
  3. Other

Submerging Markets

This week's commentary takes a look at emerging markets but first a review of the most recent Hybrid Lindsay forecast for the Dow Industrials index.

The July 14 commentary mentioned the official forecast for a low in the period July 24-31 but also explained why "a tradable low is very close". Indeed, last week's low was seen that day. The next forecast-high generated by the Hybrid Lindsay model is expected late in the week of August 10 or early during the week of August 17.

The MSCI Emerging Markets index can be traded via the ETF, EEM. Other than a brief respite last spring, emerging markets have been suffering from a rising value in the US Dollar since late 2014. A cycle low is expected this week and is confirmed by a positive divergence in the daily Coppock Curve. Longer term however, things don't look too good for emerging markets. As mentioned in my July 21 commentary, the Dollar still has strong upside potential despite what might happen in the near-term. Remember, a soaring U.S. currency triggered debt defaults in Latin America in the 1980s. A decade later, the dollar's appreciation forced Asian countries to drop their peg to the greenback, throwing the region into crisis. EEM has triggered a symmetrical triangle on the monthly chart which measures a minimum decline to 24.00 - a 35% drop from last Friday.

iShares Chart
Larger Image

 


Take a trial subscription of SeattleTA research by clicking here.

 

Back to homepage

Leave a comment

Leave a comment