Emerging markets have staged a rip roaring rally in 2012. The rally has come too far too fast.

 

 

 

 

 

 

 

 

 

 

Nothing fundamental has changed, it is just that in 2011 emerging markets were beaten down more than what could be justified based on fundamentals. From a technical perspective, such sharp rallies are simply corrective of the oversold condition and are usually not sustained.

Probability is high for a pull back and consolidation.

Wen Jibao, Prime Minister of China, has just lowered GDP growth target to 7.5%. This is the first target that is less than 8% since 2004.This is in line with what our models have been predicting since last year. Emerging markets such as Singapore, Malaysia, and Indonesia that are heavily dependent on China are vulnerable.     …… Read More

Emerging markets are very lucrative but also very volatile. ZYX Emerging Markets ETF Alert  provides short-term, medium-term, and long-term recommendations on 15 emerging markets to help you maximize profitability and lower risks. The new All Around Alert has just been published.

 

iShares MSCI Emerging index Fund ETF (EEM) is vulnerable, but several trading strategies are available that can lead to substantial profits by taking advantage of better prices available in  a correction.

 

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