We're Selling Emerging Market Stocks
January 26, 2020
I see the index failing to hold its breakout attempt this month and if we're below 45, it's vulnerable for a severe correction. With momentum confirming this failed breakout with a bearish divergence and relative strength hitting new 16-year lows, I'm not sure I can find a reason to own this. The path of least resistance here is now lower, not higher.
We want to be aggressive sellers of Emerging Markets if EEM is below 45. This is NOT, I repeat this is NOT something we want to own if it is below 45.
JC