Monday May 19, 2014
This ratio chart shows that Emerging Markets are now outperforming US Small Caps.
The CRB to RUT ratio chart looks much the same. So all this FED money sloshing around is now causing commodities and emerging markets to gain in favor.
RUT
The Bear is a cagey fellow. I suspect that RUT will rally here, staying above the 1100 support level, all the better to convince bulls this is a 'buying opportunity.' Let's look for a re test of the upper band first.
After losing 60% of its value this past year, RAX is now in play as of Friday, hence the big jump. The quickest way to get into cloud computing would be to simply buy this depressed company that still has its customer base. Let the bidding begin. This is a big issue here in San Antonio where RAX employs 5700 people. They have created a Silicon Valley type environment in a former shopping mall. Would an outside buyer leave well enough alone, we shall see.
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