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.
What I always like to say is that Technical Analysis doesn't give us all the answers, but it certainly goes a long way in helping us ask the right questions. That's what this is all about.
The Nifty 50 and Nifty 500 are back at the top of their multi-year range right as we're starting to see signs of exhaustion in various global markets.
Failed breakouts and bearish momentum divergences help us to identify potential reversals in the market and we're seeing a few of them occur in India and elsewhere.
Over the weekend I was running our "Weekend Momentum Report" for Institutional Clients and the message was very similar to last week, so I thought it was worth sharing.
While we were going to write a comprehensive post on the most important monthly charts from November, we realized there are only two that matter to India's stock market right now.
Are you guys noticing how the new 52-week high list keeps getting longer, and not shorter?
I can't emphasize enough how the lies about weak market breadth have been just that: Lies, or myths, or whatever words you need to use that won't offend people. I stopped caring about that sort of thing a long time ago and just tell it like it is (someone has to). I'm just not seeing the weak breadth scenario playing out like they keep telling me. It's actually been quite the opposite. We've been seeing expansion in participation for months. So this is really nothing new.
The Value Line Index has been a helpful barometer of US Stock Market strength in the past, and today is no different.
People don't like it when I tell them the Dow is going to 30,000. They tend to get even more worked up when I tell them it's going to 40,000 after that.
I'm old enough to remember a time when stocks going up was a good thing. In my opinion, there is still a massive amount of underexposure in the equities market.
So when I get asked, "Well JC, what's going to take stocks to those levels?". I think it's pretty clear that it's Technology:
Since late August when interest rates around the globe began their counter-trend rally we've begun to see some outperformance from international equities...leading to headlines like this.
So, is the trend in international underperformance finally over?
