Mumbai, bye India. Regardless whether the global growth story will survive a U.S. recession, India, Brazil, and China will give up some of their large gains in the process of figuring it all out.Â
India, [[IFN]], [[INP]] is rolling over and looks ready to challenge a 6 month trendline. IFN has challenged resistance 3 times, and has failed, on volume. Would you sell your IFN here for a certain gain or wait around to see whether there will be a decoupling?
INP put in a nasty topping formation. If it does not see a 10 point down move tomorrow, then it is because something crazy happens, like a surprise helicopter visit by the bearded one. Again, watch the trendline, and note the building momentum in the MACD.
Brazil, [[EWZ]] failed at the 50 day average and looks to challenge the lower boundary of a triangle pattern. The volume over the last weeks has been above average which means it might be from distribution, rather than consolidation.
I would not be surprised at all to watch Global Growth Bulls fight the dying of the light in these ETFs. Therefore, look for Head and Shoulders-like tops to form. Brazil looks like it has nearly completed its topping formation and may be the first to go.Â
India has been building over the last 5 years on TECH outsourcing. Look at INFY and CTSH and you’ll see that IFN is poised for a bigger breakdown than China.
TOP SHORT OF 2008: IFN
Great work Woody …. One ?
What do ya make of the MFI for each?
8-
What’s MFI?
We will short EWZ and call it “THE JULIE ALEXANDRIA TOP,” via Wallstrip.
It will be quite a catchy phrase, I predict.
Money Flow Index …. All are on the upswing …
Odd, No?
Nice cheeks/bottoms there too Fly ….
But fuck her …. Off with her head!
8-
on Stockcharts, here is what I see for MFI
EWZ- consolidation and test of trend line
INP- strong momentum but makes a lower high
IFN- lower highs and lower lows, looks almost like a H&S top.
I wouldn’t put a whole lot of extra weight into the MFI. It is basically another measure of momentum. What I see is that MFI has slowed while price has still risen (except EWZ). Bearish, imo.
FLY, I missed the Julie A top. What episode is it in?
today
Ahhh yes. I watched it. The Julie Alexandria Top it is.
Thanks Woody
Here’s the Wallstrip link:
http://www.wallstrip.com/
BTW: EEB is 80% concentrated in Brazil & China and was up 67% in 2007 … looks to be a day ahead of EWZ with similar downside but worse technicals … you agree?
Yes EEB looks joozy. Good call. I think the technicals are too similar to say one is better than the other. Really seems like splitting hairs. EWZ is more liquid, which I like.
Good enough ….
With China down 3-5% how will FXP react …. more than 5-10% up or more?
PS: Metals are rolling over too and SMN may be another good one
8-
Fly might be able to tell you. It will move, that is for sure.
I’ve been watching SMN, but missed an entry yesterday. It’s not very liquid, and that’s been bothering me.
Honestly, it seems too good to be true, going into tomorrow with my shorts, and China shitting the bed overnight. I’m going to be out of the office tomorrow for almost half the day, so I’m worried Bernanke is going to pull an emergency cut. I’ll have to set some loose stops.
I figure on putting stops in after the first 30-45 mins …. things may calm down and a bounce could even breakout, though short-lived no doubt … good luck and bank some coin!