US Stock Market vs Emerging Markets Update. The normal question comes up every week, is it better to invest in the US Stock market or the Emerging markets. Emerging markets have made a good percentage gain in the last couple of weeks due to Brazil, India, etc. However, is this long term or short term? We use a customized Ichimoku relative strength chart for the comparison.
Below is a customized weekly Ichimoku relative strength chart of #SPY vs #EEM provided by Tradestation. If the chart goes down than Emerging markets is better than the SPY and vice versa.
The chart is bullish where the US Stock markets has been leading the emerging markets. A major support has been holding it up. If this support gets broken then the Emerging markets can have a 9.12% gain over the US Stock markets. If this support holds then the US Stock markets will have a 3.28% gain versus Emerging markets to the next resistance.
Until the support is broken, the probabilities are bullish but with caution because the lower time frames are starting to turn bearish with the last 2 months consolidating.
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.