From the desk of Tom Bruni @BruniCharting

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

Over the last few weeks, Equities in India have been dealing with a near-term "oops" that led to the corrective period prices are currently in.

With that in mind, there are stocks that have handled this correction with ease and look ready to head higher.

From the desk of Tom Bruni @BruniCharting

Mobile Payment stocks have been a key part of our focus on the Technology theme taking place across various sectors of the market.

Since the summer the space has cooled off a bit but is back at levels where it would make sense for the trend to reaccelerate to the upside.

Here's the Mobile Payments ETF vs S&P 500 ratio (IPAY/SPY) pulling back to trendline support. This looks like a normal pullback within a long-term uptrend, however, our concern is that momentum got oversold for the first time since mid-2016.

The strongest uptrends do not get oversold, but unfortunately, this one has so we need to watch if prices bounce from this level and resume their uptrend (preferably getting overbought once again) or if they roll over through support and make fresh lows.

Click on chart to enlarge view.

From the desk of Tom Bruni @BruniCharting

Thank you to everyone who responded to this week's mystery chart.

Everyone was a seller of this one...and most thought it was an inverted chart, but it wasn't. Try again next week.

Anyway, let's take a look.

From the desk of Tom Bruni @BruniCharting

Copper has been getting a lot of attention as it hits 5-month highs, but there is another Base Metal chart that's not being talked about.

Today we're looking at that chart and then taking a more comprehensive approach at what's going on in the space.

Here's Copper making 5-month highs as momentum attempts to get overbought. The record net long position held by commercial hedgers continues, suggesting they think Copper prices can still head higher despite a more than 10% rally from the July failed breakdown.

Click on chart to enlarge view.

Stronger Copper is a good thing for Emerging Markets and reflects market participants pricing in stronger economic growth conditions.

Commodities have been a "hot mess" as a group with the exception of a few trends that we've been taking advantage of.

The last time we talked about Base Metals were in July, when we were looking for a bounce in Zinc.

Today, let's take a look and see if anything in the space has changed.

From the desk of Tom Bruni @BruniCharting

It's been about 4 months since our last Canada update and many of the trades we outlined there have run their course, so today I want to look at 3 stocks with a common catalyst to spark their next move higher.

From the desk of Tom Bruni @BruniCharting

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

Last week we discussed the potential near-term "oops" in India's major indices and those conditions remain very much intact.

With that being said, today's focus is on one sector and its largest component, both of which look vulnerable to further downside.

Let's take a look.

One of the tools we use for Indian stocks due to how top-heavy the market is are chart overlays of a sector/index's largest component and the underlying sector/index. The largest component in most cases can represent a major portion of an index and act as either a helium balloon or lead balloon, pulling the index up or down on a whim. When their performance diverges, that's when we want to pay attention.

Over the last few months, we've seen a divergence in the performance of Vedanta Ltd. which represents 19% of the Nifty Metal Index. Vedanta is making lower highs as the sector makes higher highs, suggesting that potential weakness could be ahead the group as a whole.

Click on chart to enlarge view.

From the desk of Tom Bruni @BruniCharting

Thank you to everyone who responded to this week's mystery chart.

There were a lot of people on the right track in guessing what it was...but nobody got it exactly, which serves you right for guessing.

In any case, most of you are taking a neutral or bullish approach to the chart and agreed that a potential trend reversal is in the works.

Let's take a look.

In May we wrote a post for premium members titled "Technology Issues Continue", speaking about a failed breakout and general lack of trend in Indian Technology stocks.

Our conclusion then was to be avoiding the sector on the long side and that its weakness was a drag on the broader market given its 10% weighting in the Nifty 500.

Today, not much has changed, in fact, it's arguably getting worse.

Let's take a look.

From the desk of Tom Bruni @BruniCharting

If you look at a list of the best-performing stock markets in the world this year and over the last few, you'll see New Zealand towards the top of that list in both local currency and US Dollar terms.

With that said, today's Chart of The Week is focused on another New Zealand chart that's NOT equities.

Don't worry, we'll talk equities too for you non-currency traders.