Archive for the ‘Chart of the Day’ Category

Is a Major Rally Ahead For Emerging Markets?

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The MSCI Emerging Markets Index is breaking above a major overhead trendline that has been in place for the last ten years.  A powerful rally may be on the way. 

Hat tip Ryan Detrick

From Investopedia.com:    An emerging market economy (EME) is defined as an economy with low to middle per capita income. The term was coined in 1981 by Antoine W. Van Agtmael of the International Finance Corporation of the World Bank.

Although the term “emerging market” is loosely defined, countries that fall into this category, varying from very big to very small, are usually considered emerging because of their developments and reforms. Hence, even though China is considered one of the world’s economic powerhouses, it is lumped into the category alongside much smaller economies with a great deal fewer resources, like Tunisia. Both China and Tunisia belong to this category because both have embarked on economic development and reform programs, and have begun to open up their markets and “emerge” onto the global scene. EMEs are considered to be fast-growing economies.

PSQ

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Bears Nearing Extinction

SPY shorts(bears)continue to throw in the towel.  Short interest at the end of June was down 31% over the last four months.  Now at an extremely low level:

SPY shorts

Hat tip See It Market

 

Mexico Loves Donald Trump

Russia, not so much…

Since the election, Mexico  +36%   Russia  -9%:

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Hat tip Charlie Bilello

 

 

SPY

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XOM

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IWM

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8 Years Old

At the end of June the current economic expansion turned eight years old.  Following Friday’s impressive employment data, nine seems well within reach.

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Hat tip Ryan Detrick 

INDU

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Commodities Have Become Extremely Cheap

Relative to equities commodities have not been this cheap in over 45 years:

sp500 commodities

Key bit:   From the post-crisis bottom in 2009 until today, the S&P 500 is up a staggering 215.4%.

During that same timeframe, most major commodities crashed and then went sideways. The Goldman Sachs Commodity Index (GSCI) is down roughly -31.2%, which is a strong juxtaposition to how equities have done.

This extreme divergence can be best seen in the above long-term chart, which compares the two indices since 1971.

Hat tip visualcapitalist.com

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