Friday, December 18, 2009

Emerging markets bonk

I don't know of you noticed but both the Brazil and China ETFs bonked yesterday. Both broke trendlines and 50-day moving averages and I have the feeling that these BRICs in the wall are rolling over.This chart is at of 11am Friday and shows little rebound after a 2.7% drop the day before. A strong dollar hurts commodities and does not help commodities exporting countries.


Amalan said...

Russia seems to have broken it too - RSX shows line connecting Jul 10, Sep 2 and Oct 28 has been broken to the downside. India seems to be surviving so far. If dollar strengthens further, do you see Gold breaking 1000? Seems possible, but if gold doesn't break 1000, may be Dollar will reverse course :-)

Michael Kahn said...

Without giving anything away that would make subscribers mad, here's what I have said recently in my columns (Barron's Online and Marketwatch:

1- Gold has major support at 1000 but I do not think it will get that low.
2- Dollar is now at resistance (This ran Dec 1 citing 78 as the level)