You can see the change unfolding before your eyes slowly and gently
Let me share one Case Study: Emerging Market EEM
Start of the Year: I was super Bearish about Emerging market post-Trump Victory and the reason was there for everyone to see
relentless selling in Emerging markets.
About $6.3 billion money left emerging market funds just in the past two weeks~Merrill Lynch report
— Deepak Singh (@smarket) January 2, 2017
Middle of the January 2017- But then Price Action started doing something different. This was the time to take notice
Emerging Market bouncing from lows - a decent bounce pic.twitter.com/WPiFlCi30j
— Deepak Singh (@smarket) January 12, 2017
First week of Feb 2017 -A month later - a recognition that something big is happening. But even then EEM was not a buy
Rise in Emerging market equities is on belief that reflationary trade will play out and everybody will benefit. EEM near resistance 37.75
— Deepak Singh (@smarket) February 8, 2017
The key was watching for breakout above 37.5-37.8
The Most important chart to keep an eye on: MSCI EEM pic.twitter.com/RwjfwxudFx
— Deepak Singh (@smarket) February 6, 2017
The Breakout happened by middle of Feb: It was a classic breakout - EEM broke out and then pulled back to 37.8 by the first week of March 2017. Breakout is excellent buy on pullback
Just see what has happened to that trade in last 4-5 months
How much this trade has delivered in 4-4.5 months: 15%. It's not bad for such a large liquid asset. This case study tells us how should we look at the market and scan new opportunities. It's based on Classic Science of Stock Price Action concepts.
Science of Stock Price Action - New Chapter
Watch the complete Video here (This is for Premium Science of Stock Price Action Reader)
Science of Stock Price Action Video Book
There is a logic that stocks follow when they make big moves. I have tried, to sum up, those concepts in a methodology called Science of Stock Price Action.
Do these concepts work all the time? Absolutely not. But when they work - they reward in a big big way. There are many factors at play primarily the overall market environment. The objective of my website is to put forward many Live case studies before you so that you can learn how these patterns work and why sometimes they fail too. The whole idea is to illustrate and make you understand the whole logic behind it.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers