GLOBAL EQUITY MARKETS – October 20, 2018
REVIEW
The iShares MSCI All Country World Index ETF (ACWI.O) is trying to hold above February 2018 lows. After reversing from the horizontal resistance at 74.8, the ETF fell below its long-term average and currently is trading below the 200-day average. This week's candlestick was a "doji". It shows that price found short-term support. Failure to hold above February lows can send the ETF towards the next strong support area at 63 levels.
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GLOBAL EQUITY MARKETS – October 13, 2018
REVIEW
Since the beginning of 2018, the performance between Emerging Markets and Developed Markets diverged. Emerging Markets have underperformed the Developed Markets by around 15%. Two charts below show the relative performance ratio between EEM and ACWI and also the MSCI indices, MSCI Emerging Markets Index vs. MSCI World Markets Index. You can see the fluctuations on the ratio over the years.
2016-2017 was a period of EM outperformance. In the beginning of 2018, the ratio reversed sharply and the past 10 months resulted in a massive underperformance for the Emerging Markets. We might be at an inflection point as the ratio is now testing 2016 lows. Emerging Markets might start outperforming the Developed Markets once again. (The ratio is calculated by dividing two time series EEM & ACWI and indexing it to 1 on the 1st January 2018)
GLOBAL EQUITY MARKETS – October 6, 2018
REVIEW
If one needs to explain what "trend less" market looks like, there is no better example other than the iShares MSCI All Country World Index ETF (ACWI.O). Since the beginning of the year the ACWI ETF is stuck in a tight range between 75 and 70. Usually a low volatility period like this is followed by a strong directional movement. ACWI ETF has strong resistance at 74.8 and support at 70.9 levels. The ETF is still holding above its long-term average.
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