Chinese chip stocks jump as Beijing reportedly warns against Nvidia’s H20
My Mentor, Sir John Templeton, was a strong believer in 'buy at the point of maximum pessimism.' Unless you live under a rock, you are well aware that emerging markets have not only had a few rough years, they've also had a rough start to 2014 (EEM down 9% YTD).
Ripple Effects
The above 4-pack reflects that ETF EEM, Shanghai, Hang Seng and the CRB commodities indices are all sitting on multi-year support lines. The media outlets are all over the story, per how week emerging markets are and have been. I believe the outcome of these patterns are not only important for the emerging arena, I believe how they handle these support lines will have ripple effects on the major indices in the states and Europe.
I have no positions in this area at this time. I am a believer in buy low/sell higher and like buying on support.
The reason for this post is to share our favorite assets on support and to point out that the action of the emerging markets over the next few weeks becomes more important than usual.
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