Ratio analysis is a critical piece in my macro technical approach, as it helps to differentiate different sectors, styles, regions, and themes by gauging their relative performance to one another.
Emerging markets have been on a tear, with the iShares MSCI China ETF (MCHI) making new 52-week highs again this week. The ratio of emerging to developed markets, however, suggests that this may be a bit overextended within the context of a longer-term uptrend.
You can read more over at seeitmarket.com.
RR#6,
Dave
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. Please see the Disclaimer page for full details.