Since September 24th, the Dow Industrials (shown below by way of DIA) has added thousands of points because the economy is totally healed and headed for the greatest year ever due to ceaseless asset inflation by the Fed.
It’s working. And it’s working overseas, too. The beautiful analog in EEM is dead and buried:
As is the even better setup with the EFA. It breaks my heart to say it, but classic technical analysis simply doesn’t work in a house of mirrors. The inflationary power of trillions of fiat bucks is simply too strong.
It’ll probably fail too, but I will at least mention that Brazil (EWZ) still has a dynamite looking short setup. For those keeping the faith that reality will eventually take hold, the benefit of the explosive move higher in such things as EEM and EFA is that the entry point of EWZ is much better now. (I’d use that price gap as my own stop-loss, even though I’m not going to take the trade).
