Casual observers and investors in EM occasionally jump in and out of themes and often this is exactly how to trade EM successfully. Those of us who are dedicated to the asset class and have invested in it through multiple cycles may get too close to the fire, and miss trading signals that demand a more tactical approach.
Six Weeks ago Jeffrey Gundlach ( not implying Gundlach a casual investor in EM) got the attention of the casual observers and investors by pointing out how he was getting long EM, and identifying the SPY as a relative value pair. After 3% of instant outperformance (related or not) EM then sold off 3% on a combination of weaker macro, Dollar rebound, and no question oil has not helped. The index failed to break out past the pre-election level of .1750 on the ratio as if on queue.
The chart is turning again.
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- Your first trade for Thursday, September 21Source: Fast MoneyPublished on 2017-09-21
- China building world’s first deep sea mining vesselSource: China.orgPublished on 2017-09-21
- 11 foreign military bands to join Nanchang Int’l Military TattooSource: China.orgPublished on 2017-09-21
- Beijing mulls banning fireworks in city properSource: China.orgPublished on 2017-09-21
- China begins to restore 350 kmh bullet trainSource: China.orgPublished on 2017-09-21
- Cheating scandal urges China to improve marathon cultureSource: China.orgPublished on 2017-09-21
- 80% of Chinese adults clueless on contraceptionSource: China.orgPublished on 2017-09-21
- China establishes environmental-capacity alert systemSource: China.orgPublished on 2017-09-20
- Chinese police arrest 118 in scam targeting seniorsSource: China.orgPublished on 2017-09-20
- CPC punishes officials for consuming high-end alcoholSource: China.orgPublished on 2017-09-20
- Xi calls on HK youths to serve HK, countrySource: Xi calls on HK youths to serve HK, countryPublished on 2017-06-30
- Your first trade for Thursday, September 21