Are you noticing the relative strength in Emerging Markets? That is NOT something we would expect to see if the world was actually coming to an end.
I can't stress this enough, stay away from the glorified gossip columns. They know less than nothing. You know who knows? The market. So that's where we'll get our data.
Think about it like this, there are more people and firms with more money and better intelligence than any of these governments, communist or otherwise. Are you actually going to trust the propaganda being put out in the "news"?
Or do you trust the people putting actual money behind the information they're spending a fortune to get? When we want to know what's really going on, we turn to the markets. The rest is pure junk.
For now, we're in an environment where we want to be buying stocks. We want to be incredibly disciplined with our risk levels, probably more than usual, but buying stocks nonetheless.
We've been running scans for stocks putting in bullish momentum divergences, or better, not getting oversold at all. We'll have more data on this out shortly, but you'd be surprised at how many there are. I definitely was. It's a lot more than you'd think.
I'm looking at things like Homebuilders and Emerging Market stocks outperforming here and I'm just not getting the 'end of the world' feeling I was getting a month ago.
The first stock that comes to mind when I think about Emerging Markets has to be Caterpillar. I mean they look exactly the same right?
Here's a look at $CAT holding above those 2011-2012 highs. That former resistance has turned into support over the past year or so, just like our Polarity Principles would suggest.
I think 120 is a good level. We only want to be long if we're above that with a target back up towards 155 for now. We'll likely raise those targets, but that's a good place to take profits for now:
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