The U.S. equity market has outperformed overseas markets for quite a while. In these reports and during our technical analysis-driven webinars, I have attempted to highlight overseas opportunities as their price and relative strength charts dictated.    

 An indicator produced by Ned Davis Research (NDR) named Global Big Mo Tape Composite recently moved above 77 and into favorable/bullish territory. According to NDR, “this composite uses momentum and trend indicators from the MSCI ACWI markets.” There are no economic and fundamental indicators within the Global Big Mo Tape Composite.

MSCI All Country World Index vs. Global Big Mo Tape Composite Chart.
MSCI ACWI Performance Table.

So what? Big topside moves tend to be global in scope. Based on my interpretation of the NDR indicator above, global participation in the current rally continues to improve. The MSCI EAFE Index chart caught my attention because it recorded a bullish upside breakout, is not overbought on a weekly basis, and, most importantly from a contrarian perspective, I have seen very little discussion about it.

MSCI EAFE Index Chart.

Last-minute Chart: Small Caps have lagged Large Caps for quite some time. This was apparent when viewing various Advance-Decline Lines associated with the Large, Mid- and Small Cap universe. Large Cap A/D Lines have been setting new all-time highs for weeks, while the Small Cap A/D Line last recorded a new all-time high in February. That is until now. As shown in the chart below, the Small Cap A/D Line closed in new high territory last Friday. At the same time, the cash index is still trading below a declining 200-DMA resistance line. More succinctly, the recent new all-time high by the Small Cap A/D Line suggests the odds favor an eventual topside breakout by the S&P 600 Small Cap Index (SML/964.85).   

Small Cap A/D Line Chart

Day Hagan Asset Management thanks you for allowing us to be part of your success!  


Day Hagan Market Update Webinar with Donald Hagan, CFA, April 10, 2019 @ 4:15 PM EST

Day Hagan Technical Analysis Webinar with Art Huprich, CMT, April 16, 2019 @ 4:15 PM EST

Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management

— Written 04.08.2019. Chart sources: StockCharts. The title of this report is attributed to a departed Wall Street veteran, Paul Montgomery. 

PDF Copy of Article: Day Hagan Tech Talk April 9, 2019 (PDF)

Disclosure: The data and analysis contained herein are provided "as is" and without warranty of any kind, either express or implied. Day Hagan Asset Management (DHAM), any of its affiliates or employees, or any third-party data provider, shall not have any liability for any loss sustained by anyone who has relied on the information contained in any Day Hagan Asset Management literature or marketing materials. All opinions expressed herein are subject to change without notice, and you should always obtain current information and perform due diligence before investing. DHAM accounts that DHAM or its affiliated companies manage, or their respective shareholders, directors, officers and/or employees, may have long or short positions in the securities discussed herein and may purchase or sell such securities without notice. The securities mentioned in this document may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors.

Investment advisory services offered through Day Hagan Asset Management, an SEC registered investment advisory firm. Accounts held at Raymond James and Associates, Inc. (member NYSE, SIPC). None of the entities listed here in this disclosure are affiliated.