The prevailing theme this year is that more international markets are challenging the dominance of the United States in equity performance.
This rotation has taken place for quite some time now and at least in the short-term it seems overextended.
A number of global ETFs are at big resistance levels and backed off last week. More importantly, as global markets stalled last week, this money did not flow back into the US.
This raises an important question; if international markets pause their gains, does this money flow into the U.S. markets (risk-on) or into safe haven assets (risk-off).
To demonstrate this point, here's a few examples.
Austria $EWO is near the top of the list and paused as it retested this resistance.
Singapore $EWS did the same.
And China $FXI is failing to hold this breakout.
And while international markets paused last week, the S&P 500 closed down 1.50% last week.
Not great.
It's clear that a structural shift is taking place here.
Our conversations in New Orleans are set to be full of contention; international markets are taking the lead over the US. This hasn't happened in over 15 years...
Our Portfolio Accelerator program is an exclusive, entry-only group where members get inside access to our in-house analyst meetings as well as our live private chat room.
We're meeting in person in New Orleans in May 13-15, where we talk trends, trades, and making money. And of course, with some fantastic food and vibes mixed in, too.
