Charts & Markets – 21 Jun, 2018

 

Emerging Markets

The iShares Emerging Markets ETF $EEM had 3 corrections of 20% or more and another 3 corrections of between 10% and 20% from mid-2003 to late-2007, a period during which $EEM went up 400%+.

Since the 2016 low, $EEM is still to record a 20% correction. Don’t be shaken out so easily.

EEM US Equity (iShares MSCI Emer 2018-06-20 14-37-28

Nasdaq Biotechnology Index

Based on the 52-week rate of change in the index (second panel), biotech stocks during the last 18 months have been in their most benign (no pun intended) trading range over the last 10 years. A big move, either up or down, seems like its coming.

NBI Index (Nasdaq Biotechnology 2018-06-20 16-18-07

US 10-Year Treasury Yields

Yields are retreating from where they topped out during the 2013 Taper Tantrum.

USGG10YR Index (US Generic Govt 2018-06-20 14-39-24

Rogers International Commodity Agriculture Index 

Agriculture commodities are stuck in a rut.

RICIAGTR Index (Rogers Internati 2018-06-20 16-30-02

The Trillion Dollar Company

Who is going to be the first? $AAPL, AMZN or $GOOG. We think it will not be $AAPL. The momentum is surely with $AMZN.

GOOG US Equity (Alphabet Inc) UX 2018-06-21 12-41-01

Australian Banks

The price action in Australian banking stocks is terrible. Here is National Australia Bank.

NAB AU Equity (National Australi 2018-06-20 15-06-39

And here is Commonwealth Bank of Australia.

CBA AU Equity (Commonwealth Bank 2018-06-20 15-19-25

Southwest Airlines

Not feeling the $LUV.  Will it break $50? Well we have been short for some time now.

LUV US Equity (Southwest Airline 2018-06-20 17-01-26

 

This post should not be considered as investment advice or a recommendation to purchase any particular security, strategy or investment product. References to specific securities and issuers are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Information contained herein