1/2/19 “Bad Apple Won’t Stop Equity Run & Emerging Markets Reveal Tells?” Wednesday, Jan 02, 2019 by: Max Powerposted in: Commentary The stock market is obviously extremely oversold from an intermediate term standpoint and I am guessing that today’s aftermarket pre-announcement of a poor quarter by Apple could plant the bottoming flag? They saved the 2018 performance of many a money manager by notifying the street today and not in December as the stock was down as much 8% in the aftermarket. Thank you Mr. Cook and co. The asset class that could lead global stocks in the coming months is the Emerging Markets (off 27+% from Jan high) and there is some pretty good evidence to support this assertion. Chart below is pretty busy, but there are a lot of good things going on here. First it has gone sideways since its closing Oct low while the S&P 500 dropped another 9% (strong relative strength). MACD has been rising since the low (positive divergence), and chances are the downtrend should be pierced soon potentially creating a rush to get in. Also in EEM’s corner is the topping pattern in the US $. The world’s reserve currency has been on a tear since the spring, but has now formed a distinct and usually dependable weekly MACD negative divergence. EEM much prefers a falling dollar and it appears this is in the cards. The setup here might last 2-4 months and EEM could significantly outperform domestic sector/indices during that period. Luckily we sold EDC (3x EEM) today on a intraday negative divergence signal before the close. The Apple news should give us a re-entry point in the next couple of days. This also might be a good time to overweight Emerging Markets in your 401ks’s, IRA’s or other longer term portfolios. Final Thought – “My drug test came back negative, my dealer has some explaining to do” – Unknown More later, Max Power Reply with UNSUBCRIBE to be remove Disclaimer: Remember everything I said could be wrong, the market always has the last word. Join our listSubscribe to our free newsletter and get exclusive content delivered to your inbox. Knowledge is power! Thank you for subscribing!Something went wrong.We promise to keep your information private and never spam.