zhaojiankang/iStock via Getty Images
After a data-filled week (US CPI, FOMC), we can now take stock on the technical picture of the markets. Overall, despite looking a little extended, the uptrends in multiple sectors continue to look healthy.
Under The Radar Strength In Commodity And Emerging Market Stocks (Technical Analysis)
Summary
- Emerging markets and commodities are showing strength amid a weak USD, which has a historical negative correlation with these sectors.
- Risk-on currencies like the Australian Dollar and Canadian Dollar have broken out against the USD, providing a supportive backdrop for emerging markets and commodities.
- If the USD breaks below its support, it could lead to a further decline, potentially triggering powerful uptrends in commodity and emerging market stocks.
- Emerging market stocks are breaking out higher - including China Technology, Latin America, and even Argentina.
Price action and charts. On Substack @thehermittrader
Analyst’s Disclosure:I/we have a beneficial long position in the shares of PDD, VIPS, LI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.