Markets continue with their Bullish Trending
If one listens to the experts and pundits on TV, there seems to be a lot of nervousness in the markets whether the 2-week rise in the markets is sustainable. For the most part week 3 went fine.
Here is the trending heat map:
The S&P 500 trending remained the same even though 3 out of the 4 trading days of the week it was down.
The NASDAQ also maintained its trending. No change.
The Russell 2000 also maintained its trending. No change.
China FXI also no change in trending and it made a new 6-month high. (I am long FXI calls).
Eurozone EZU and Europe, Australia, Asia and Far East EFA continue to trend perfectly bullish.
Emerging Markets EEM remain same. No change.
The Dow Jones Industrial Average had a bad week. The price fell below the 10-day, 20-day and 50-day moving averages. The Dow was one of the leaders when things started to turn up. Will it also be a leader in the turn towards bearish again? Need to be careful.
All-Country- World Index ACWI maintained its trending. No change.
Here is the week-over-week returns:
Last week returns are a mixed bag. The squeamishness seems to be reflected in the Dow Jones for the most part. China maintained its performance. The NASDAQ has had 4 straight weeks of gains. So, we will see if it can do 5 in a row.
Here are the returns over different periods:
Good to see so many black columns. We are now close to all positive returns over 6 months. Interesting that only the S&P 500 and the NASDAQ are the laggards.
Conclusions:
The major markets are still trending mostly bullish. As my system is based upon trend following, I will continue with my trades based on the trends I see.
The NASDAQ seems to want to take leadership as it has shown greater strength than others in the US markets over the last 4 weeks.
The global markets continue to do better than the US markets for now. China is definitely coming out of its shell.