Strategies for Short Term Traders: Are Emerging Markets Leading While U.S. Markets Follow?
Good Morning
Yesterday’s rally was obviously overdue and it brings the market to neutral/slightly oversold today.
The U.S. is still lagging behind the rest of the world as far as short-term relative strength goes, but over the past few months I’ve seen the smaller emerging nation ETFs rallying/declining first and the U.S. following their lead shortly thereafter.
As I’ve mentioned many times before, correlations are dynamic and the speed of change in correlations is very much underestimated by traditional Wall Street analysts. In the past, the U.S. markets have led and the other nations have followed. Recently though, the opposite has occurred. I’ll make sure I keep you updated on this, especially as it continues to play itself out.
The above is from Larry Connors’ Daily Battle Plan. To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
Larry Connors is founder and CEO of TradingMarkets.com.