Monthly Archives: March 2016

Bursa Malaysia Changes Direction

Dictated by the simple fact that emerging markets are outperforming U.S. equities since January, we’re continuing our world tour with this research. We don’t dismiss that U.S. equities have been on quite a rally since their early February low. However, as impressive as that’s been, emerging markets have been even more so. Today, we’re taking a look at Malaysia using an ETF that mirrors the Bursa Malaysia (formerly Kuala Lampur) Stock Exchange. The ETF we’re using is EWM.

Here’s the weekly chart of EWM.

Malaysia EWM Weekly

We quickly notice that Malaysian equities have been in a downtrend since mid-2014. The 42% depreciation was fast and fierce until Summer 2015, where price met demand at the 6.75 level. This level has historical significance dating back to 2010. Looks like buyers/sellers have a good memory. Since finding buyers near 6.75, Malaysian stocks have continued to attract more buyers, driving price into a new potential uptrend.

This recent breakout (annotated on chart) is significant and one we can use to our advantage. Nothing is guaranteed, but this setup has potential. Looking at the daily chart, we can see that EWM has been outperforming the S&P 500 (upper pane).

Malaysia EWM Daily

We can also see well-defined risk and potential reward. It is skewed in our favor. 8.40 is an important support level based on the principal of polarity (former supply becomes demand). Below 8.40 and we don’t need to own EWM. Above 8.40 and we like the reward potential. Malaysian stocks are worth owning until price tells us otherwise.


Disclaimer: Nothing in this article should be construed as investment advice or a solicitation to buy or sell a security. You invest based on your own decisions.

 

Mother Russia!

While most are watching U.S. equities rip higher, we’re continuing to see strength from emerging markets. Previously, we highlighted the breakout taking place in Brazil. Up 13% since we released that research, Brazil hasn’t disappointed. Though nothing is guaranteed, and price knows more than we do, we are seeing a similar development out of Russia. […]

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Singapore Straits About to Spout Off

If you follow us on Twitter (@360Research), it’s not a secret that we’ve been talking about emerging markets and other international indexes outperforming US stocks. One such market is in Singapore. After seeing the Straits Times index decline 30% over the last year, we’re now seeing new demand enter Singaporean stocks. The Straits Times Index is […]

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Time To Buy Oil

Do you know the best time to buy oil? Or, any asset for that matter? It’s simple, yet we all love to make things more complicated than they need to be. The simple answer is that we should buy an asset when the reward dramatically outweighs the risk. So, when we hunt the best opportunities, […]

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Brazilian Breakout

For the past 5 years, Brazilian stocks have been hammered. Since the top in 2011, equities in Brazil have experienced a 74% drop. But that appears to be changing. You wouldn’t think that if you used the financial media to make your investment decisions. You would think that the worst is yet to come. For example, […]

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