In today’s briefing:
- Positive Character Changes; MSCI ACWI Ex-US, EAFE, STOXX 50, Countless Others Reversing Downtrends
- Country Garden, China Resource Land, Alibaba, and HSBC
Positive Character Changes; MSCI ACWI Ex-US, EAFE, STOXX 50, Countless Others Reversing Downtrends
- The bear market rally we have discussed since our Sept. 29 Int’l Compass has managed to surpass our price targets, which were the YTD downtrends on the ACWX-US and EFA-US.
- As you will see below, many countries are reversing topside their 6.5-month to YTD downtrends.
- As a result of these bullish reversals and breakdowns on the US dollar (DXY) and 10-year Treasury yield, we are upgrading our outlook to neutral. Buy on pullbacks.
Country Garden, China Resource Land, Alibaba, and HSBC
- Wish had more conviction for writing this update. The framework for determining if the bounce is durable or if a trend reversal has occurred is not working or is not clear.
- Stocks that could see tailwinds and drivers for a sustained rally do not have the Volume to confirm the trend change.
- At the same time, stocks with massive headwinds and structural issues have high Volumes.
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