Nov 27, 2014

EEM

Happy Thanksgiving to the readers in the USA:)

I was asked several times about EEM (emerging markets) and this index mirrors perfect what I think will happen in the long term so I have decided to post one chart.
From EW perspective the count is very clear in contrast with other markets. Clear 5 wave impulse from 12.2008 to 05.2011. Clear corrective structure for the last several years which needs last final plunge lower. After an impulse and correction another impulse higher should follow.

My thoughts for the long term - this bull market feels different... I do not think it is driven by "natural market forces". The bankers are not ready to give up. EEM DAX and Russell2000 hint that we should see one more leg lower. If we see another correction in Q1 next year the CBs will freak out again and I expect final blow off. Eventually natural forces will win but before that the market should become an "uncontrollable monster". I think we will see even more crazy staff to the upside before it is game over.

Expect veeery interesting 2015..... so enjoy the holidays for the rest of 2014 and prepare for the wild ride next year:)

1 comment:

  1. thanks krasi. great posts on eem.

    ReplyDelete