By Kris Sayce – Port Phillips Insider (Australia) –
Your editor isn’t much of an expert when it comes to technical analysis.
Scratch that. We’re nothing of an expert. Our knowledge of and interest in technical analysis barely hovers above zero.
That’s why we leave that stuff to the experts.
We’re not entirely sure why technical analysis bores us so much. Sitting next to a grumpy but endearing old stockbroker for two years (may he rest in peace) in the mid-2000s may have something to do with it.
He would derisively refer to technical analysis charts as ‘pictures’.
Whatever the reason, charts bore us. That is, unless there is an interesting or intriguing story behind the chart.
Our relatively new-found fascination with Dow Theory and its chart pattern is an example. As is the glee with which we look at the chart of estimated US company earnings, where analysts insist earnings will rise 20% over the next year.
And so, the chart that grabs our attention today is another with a story behind it. It’s a chart which, according to Bloomberg, ‘stands on the cusp of entering a bearish trading pattern known as the death cross’.
The chart in question is of the MSCI Emerging Markets index. You can see it below: