The attached chart of the Russell 2000 shows a breakdown that many have been calling for but has yet to really unfold.
We have made the following adjustments to the EMCHI as of April 15th: Baidu (BIDU, quote) and Tencent (TCEHY, quote) as mega-cap plays in the index already occupy the two largest weightings but have seen healthy pullbacks to core support and remain the best mix of proven revenue growth and valuation attractiveness.
Nasdaq BioTech Index led to the move lower for all stocks.
Jobless claims hit 300k this morning and set a low level not seen since May 2007, and now the 4wk moving average is 316K.
US Equity players are near as bearish as they have been in a long time.
After a 23% pullback in the Emerging Money Chinese Internet Index (EMCHI) and subsequent 4% bounce off the recent lows, we are getting a number of calls regarding whether or not there is a real entry point here and where we would guide for stopping losses.
We said 52K on the Ibovespa was a place to take profits.
Look at Japanese and Brazilian stocks since 2012.
As the S&P struggles and Nasdaq plummets, earnings season will add some fundamental fuel for stock pickers to determine whether this is a time to buy weakness.
We introduce our Emerging Money Brazil Index (EMBRZ) which is an index of 20 stocks that give investors more balanced exposure to Brazil than they would get from an investment in the EWZ or other MSCI linked indices….