MY JOURNAL FOR WEDNESDAY MORNING – JULY 31, 2019
NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS
MSCI World ex-US Index – EquityClock.com 📝
Upcoming BNN Appearance:
Equity Clock will be on BNN’s Market Call Tonight at 6:00pm ET on Wednesday, July 31st taking your calls on Technical Analysis and Seasonal Investing. CALL TOLL-FREE 1-855-326-6266, EMAIL firstname.lastname@example.org, or TWEET @MarketCall.
We continue to be drawn by the activity of the MSCI World ex-US Index given that the next leg of the equity rally will be dependent on those areas that have lagged. Following years of tremendous inflows to US stocks, pushing valuations into premium territory amidst the relatively better growth prospects of the US economy versus the rest of the world, global stocks have inevitably lagged by comparison. Analysts have been trying to justify the better risk-reward in stocks outside of the US for years, yet the US market, as gauged by the S&P 500 Index, continues to outperform. Any signs of strength in global equities could fuel a shift from US stocks to global equities, the net effect of which would likely see gains in both (global stocks relatively more). The MSCI World ex-US Index is grinding below previous support, now resistance, just below 1950, a break of which could be a likely trigger of a shift towards these laggards. The global benchmark broke above declining trendline resistance in April and tested that previous declining trendline as support back in May. Seasonally, while still room to run in the period of seasonal weakness, it is best to add global equities to your radar given that the period of seasonal weakness for the group, overall, ends in September. – READ MORE (Click here to see charts)
Tech Talk is a free stock market letter service available at TimingTheMarkets.com and EquityClock.com. Ask us about the Seasonal Advantage Portfolio.
The Systematic Investor Series #4 – Top Traders Unplugged 📻
This week, the guys discuss whether commodities are more risky to trade than equities, if a stocks-only Trend Following strategy can be profitable in the long run, if a deep drawdown is worse than a long drawdown, and the importance of over-estimating any possible drawdowns implied by a backtest. Questions answered include: should all Trend Following funds be required to provide Crisis Alpha? Is there ever a good time to override your system and trade outside of the rules? Should you always execute trades from your signals immediately, or wait for an extra confirmation sometimes? Is there an edge to be gained from seeking the perfect entry into a long-term trade? How many positions should you have open at any one time? What can be considered a good amount of leverage?
BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS 📈
TMX Group (TSX:X)
Mag Silver (TSX:MAG)
Pattern Energy Group (TSX:PEGI)
Xebec Adsorption (TSXV:XBC)
MediPharm Labs (TSX:LABS)
Largo Resources (TSX:LGO)
GT Gold (TSXV:GTT)
MOMENTUM ALERT SIGNALS 📡
Have a great day! 🙂
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