Technical Analyst - Global with an Asian focus, Aletheia Capital

Chris Roberts

Technical Analyst - Global with an Asian focus

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

Global equity markets have started 2018 well, the MSCI World (MXWO – 2,158) is up 2.6% year to date, while the world’s most important index, the S&amp;P 500 (SPX – 2,747) is up 2.8%. In Asia, the MSCI Asia Free ex-Japan (MXASJ – 742) has gained 4.0% thus far in 2018 and the MSCI Emerging Markets Index (MXEF – 1,207) is up 4.2%.The strong start reflects the same buoyant risk appetite that market that characterized 2017. From October 2016 through March 2017 we made 15 different buy recommendations as the global bull market corrected and then resumed, but we don’t see the same attractive risk/reward here.We remain bullish longer term but are not willing to chase markets here. Our concerns are based on what we are seeing on the monthly charts of many benchmark indices.Dirty Harry’s (Clint Eastwood) Do you feel lucky punk? would appear to be a pertinent enquiry for buyers at current levels (minus the punk, of course).

Global equity markets have started 2018 well, the MSCI World (MXWO – 2,158) is up 2.6% year to date, while the world’s most important index, the S&amp;P 500 (SPX – 2,747) is up 2.8%. In Asia, the MSCI Asia Free ex-Japan (MXASJ – 742) has gained 4.0% thus far in 2018 and the MSCI Emerging Markets Index (MXEF – 1,207) is up 4.2%.The strong start reflects the same buoyant risk appetite that market that characterized 2017. From October 2016 through March 2017 we made 15 different buy recommendations as the global bull market corrected and then resumed, but we don’t see the same attractive risk/reward here.We remain bullish longer term but are not willing to chase markets here. Our concerns are based on what we are seeing on the monthly charts of many benchmark indices.Dirty Harry’s (Clint Eastwood) Do you feel lucky punk? would appear to be a pertinent enquiry for buyers at current levels (minus the punk, of course).

MSCI AC Asia ex Japan Index (MXASJ INDEX)

MSCI Emerging Markets Index

Global Markets: Do You Feel Lucky?