There are two themes that I would like to discuss on this chart. 1) Breakout to all-time high levels which I like to call uncharted territory. 2) Significance of long-term chart patterns. I’ve been following and writing about this pair for almost 2 years. I’ve been also betting on U.S. dollar strength against most of […]
Industrial sector outperformance is usually negative for Turkey’s BIST 100 index. Last time I updated this chart was in January 2014. Since the last update It’s been more than a year and BIST 100 index trended higher from 60,000 levels to 91,000 levels. Strong upward trend might be reversing once again towards a corrective period […]
A chart that breaks out to all time high levels has the least resistance. It is called the uncharted territory. Prices are expected to resume their trend after a decisive breakout to all-time high levels. This is what happened with some of the indices over the past few years. I attached below some of the […]
In 2014, Qatar has been upgraded to emerging market status with the United Arab Emirates. Vietnam is still in the frontier market universe. Over the past year both indices formed head and shoulder top chart patterns. Head and shoulder is a common reversal chart pattern, that usually forms after a long up/down-trend. Since the beginning of […]
Since the beginning of 2013, emerging markets currencies performed poorly. Though one currency showed resilience over the past 2 years; Philippine Peso. During 2013 the cross-rate moved from 40.5 to 45.5 and in 2014 the performance of Philippine Peso was neutral against the U.S. dollar. Whereas during the same period most of the emerging market currencies […]
Global equity indices are gaining upside momentum. Recent breakouts above long-term trend lines suggest multi-month uptrends. Last week's price action pushed UK FTSE 100 index to all time high levels. Charts that are very close to long-term breakouts: MSCI ALL COUNTRIES WORLD INDEX, EURO STOXX 50 INDEX and UK FTSE 100 INDEX.
Positive price action is likely to continue in the developed market equities.
Peru LIMA IGRA index has one of the weakest chart set-ups in the emerging market equities. Multi-year head and shoulder top has a neckline standing at 14,150 levels. Index is trading at 13,493 levels – below the multi-year support. Decisive “weekly” close below 13,360 levels (minor low in January) will confirm the downtrend towards 10,000 levels. Strong […]
Here is a detailed article that explains the difference between on shore and off shore Chinese Yuan. http://www.businessinsider.com/onshore-and-offshore-renminbi-2014-2 I am analyzing the long-term base formation on the USD/CNH (Chinese Yuan Off Shore) in this update. I think this chart is important as we start reading more about currency wars. Cup & handle is a reversal pattern. In […]
Commodities markets have performed poorly compared with stocks over the past 3 years. From industrial metals to agricultural commodities deflationary pressures are being felt worldwide. Platinum prices which is almost 50% lower than 2008 historical high levels, is now testing a 15 year-long trend support. Usually prices should rebound sharply from such historical level. However, over […]
During the sharp correction in October 2014, S&P 500 index reached 1,800 levels and CBOE VIX jumped to 31 levels. VIX is often called the “fear index”. Higher levels of VIX can coincide with market corrections. Over the past 2 months CBOE VIX has been consolidating in a tight range. Consolidation can be a symmetrical […]
