Why the Nifty and many other emerging market stocks screamed "Buy!" three months ago
By Elliott Wave International
From Elliott Wave International's February Asian-Pacific Financial Forecast (published Feb. 7):
...Bloomberg reports that "more than $7 billion flowed from ETFs investing in developing-nation assets in January, the most since the securities were created." Such massive selling...supports our view that emerging markets are ending large-degree three-wave declines.
Conventional observers are asking the question, "Is this 1997 all over again?" (The Economist)
The way we see it, the return of such headlines in January supports another significant low now -- from a contrarian perspective.
EWI's Asian-Pacific Short Term Update editor Chris Carolan soon echoed those bullish views. Here is a forecast the APSTU made for India's Nifty Index on March 4:
The strong short-term Nifty rally has pushed prices above their upper daily Keltner channel resistance level.
Look for this [rally] up to push through the 2014 highs at 6400 in coming sessions.
The intraday Keltner channel slope is steep, indicating this trend has enough strength for sharp short-term gains.
You've already picked up on the indicators we used to turn bullish on emerging markets in general, and on India in particular: Continue reading "Indian Stocks: You Want a REAL Opportunity? Know WHEN to Look for It"