A Quick Look at Markets from Around the World

Jan 25, 2008: 8:07 PM CST

With the market turmoil not contained to the US Market, I thought it would be productive to highlight the weekly charts of some of the major countries of the world.

I will be using the MSCI iShares from StockCharts.com for the quick fly-by around the world.

Let’s fly around the world, starting with Brazil:

Brazil has shown a solid uptrend, and the recent market turbulence seems to have been contained to the rising 50 period moving average, which actually created an excellent buy for longer term investors.

From Brazil, let’s fly across the Atlantic to France, where a rogue trader embarrassed the whole nation by scandalizing the country’s second largest bank with $7.1 billion losses:

France peaked in mid-2007 and experienced a lengthy momentum divergence and increased selling pressure which led to a major downside gap this Monday, and most of the gap has been recovered. The iShare has potentially formed a double-top.

Now, let us drive to neighboring Spain, which highlights an interesting and consistent wave pattern in its price chart:

Realizing that the other European nations (Austria, the Netherlands, Italy, Switzerland) show similar patterns to that of France, I thought it best we move on to Asia to see some of her markets there.

Malaysia did not suffer such a significant attack as the other global nations did. Although price is beneath its recent high, Malaysia’s iShares continued to rise until last week while other global markets were selling off prior. Perhaps there is some underlying strength others see in this country.

On to the island nation of Japan:

Japan has fared worse than most other iShares countries, and price made a recent major low at $11.75. Japan’s recent price high goes back to the start of 2007, while other nations were making price highs much later. The trend is down, yet price has climbed above the rising 200 period moving average following this week’s initial downside gap.

Finally, let’s travel to the Land Down Under and see what red-hot Australia has been doing:

Price gapped far beneath its rising 50 period moving average, breaking the lengthy uptrend which has been in place for years. This could be the start of a major reversal back to the upside, but price sits at a critical area just beneath the declining 50 period average.

Realize that there’s a whole other world out there beyond our precious Dow Jones Index and the S&P 500. In fact, you can also make money and increase your diversification by investing overseas.

(Please visit post sponsor INO)

Take a break – you survived one of the strangest weeks in recent trading history!


5 Responses to “A Quick Look at Markets from Around the World”

  1. Stock Market » A Quick Look at Markets from Around the World Says:

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  2. Yaser Anwar Says:

    Hey dude,

    Can you please add Feedblitz/burner to your blog so I can read it through email?

    Much appreciated sir,
    Yaser Anwar

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    More on the stimulous package: (http://benbittrolff.blogspot.com/2008/01/fact-sheet-bush-stimulous-package.html)

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