Our first downside objectives in the major indices have been met, so we’re back on the lookout for long ideas.
One stock that has caught our attention is IndoStar Capital Finance Ltd.
Expert technical analysis of financial markets by JC Parets
by Tom Bruni
Our first downside objectives in the major indices have been met, so we’re back on the lookout for long ideas.
One stock that has caught our attention is IndoStar Capital Finance Ltd.
by Tom Bruni
We’ve been pointing to weakness in Indian equities, and equities around the globe, since mid-January. Last week the global leader, United States equities, joined the correction party and quickly met our downside targets.
We’ve since flipped long US stocks and are now playing for a bounce.
Patience has paid in Indian stocks, so here’s a quick update on our view now that our first downside objectives have been hit in the major indices.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Today JC discussed our March playbook for Members and outlined some areas we’d be looking for a bounce with well-defined risk and others that we want to be completely avoiding.
I wanted to share a few breadth measures to provide context around the recent decline and see if they offer any clues around what’s next.
by Tom Bruni
There are some interesting moves happening in the Indian Rupee, so let’s take a look and update our risk management levels and targets.
Here’s the US Dollar/Indian Rupee pair on a longer-term basis. What’s clear from the weekly chart is that our thesis remains intact. As long as prices are above 69, then the path of least resistance is still higher.
Click on chart to enlarge view.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Sunday we outlined a trade in Cocoa that’s working well so far, so today we wanted to outline a similar situation developing in Sugar.
Let’s take a look at what’s happening.
by Tom Bruni
As stocks around the globe slump, we’re seeing another failed breakout attempt in one of India’s largest sectors.
Let’s take a look at what it means and what it’s going to take for it to finally sustain new highs.
by Tom Bruni
We’ve been advocating for a more defensive approach towards Equities for most of the last month as the Large-Cap Indices failed to hold onto their new highs and have since reiterated that sentiment throughout February. (Feb. 3rd and Feb 18th)
The strongest Equity market in the world has been the US, however, last week prices started to confirm the weakness we were seeing under the surface since January. Today we wrote a brief piece on US market breadth which reinforces our view that defense remains the name of the game.
This follow-up is to make the point that if the strongest market in the world is catching down to weakness in the rest of the world, then India and other countries that have underperformed are likely to continue struggling in the near-term.
In fact, the breadth divergences we highlighted in the US are also playing out in India.
Let’s take a look.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
Bonds, Gold, and Defensive Stocks like Utilities, and Cash have been our defensive playbook for the last month.
We’ve made it clear over the last few weeks that we don’t want to be long stocks given current conditions and think there’s downside risk from a short-term perspective, despite the structural picture remaining largely unscathed.
Given last week’s slight downside follow-through in US Stocks, I wanted to share two breadth charts from our Market Internals Chartbook that summarizes current conditions well.