Although we’ve not seen those developments yet, US Stocks (S&P 500) is back above its December lows and other foreign indexes have started to catch a bid in the near-term. This subtle improvement is suggesting some trade opportunities could develop on the long side for those who hold positions for a few days to a week or two.
In our last post, we looked at the implications of the Nifty 500’s breadth and momentum divergences.
In this post, we’re outlining the three charts we’re watching this week to help determine risk appetite for stocks.
Last week we started to see a few momentum and breadth divergences form in Indian stocks, however, they’ve not yet been confirmed by price.
In this post, we’re going to outline what price level in the Nifty 500 would confirm them, what confirmation would mean for our intermediate-term outlook, and how we’re managing risk in both scenarios. [Read more…]
Warning signals were piling up throughout 2020, but weak breadth has been an underlying issue for Indian stocks since they made new highs in August 2016.
While we wait for breadth and momentum divergences to form and suggest getting aggressive on the long side, we’re going to look back at how the average Nifty 500 stock has performed over the last 3.5 years and why this data is relevant to today’s market.
While we wait for the breadth and momentum divergences to develop in the equity markets, we’re taking advantage of other markets that offer uncorrelated trade opportunities.
Today, we’re looking at Jeera and Crude Palm Oil on the long side.