Buy Signal in Good Shape

 

This is an excerpt from Cabot China & Emerging Markets Report, which seeks to capitalize on the big boom in China and other emerging market countries. Editor Paul Goodwin, Cabot’s international investing guru, provides your passport to profits.



The remarkably energetic rally in the PowerShares Golden Dragon Halter USX China ETF (PGJ) that began on March 17 at 27.5, pushed it as high as 32.7 on April 10. The Golden Dragon has experienced similar gains a couple of times since the beginning of its range-bound streak in October 2013, but none quite as concentrated. PGJ has now put in five days trading between 32 and 32.5, which is a calm consolidation without any evidence of profit taking or remorse selling. This action keeps our buy signal in good shape.

Earnings season is kicking into high gear for U.S. companies, but emerging market stocks are generally several weeks (or more) behind their U.S. counterparts. Thus far, only three of our portfolio’s stocks have confirmed Q1 reporting dates.

It was a flat day for developed markets, as the major indexes tried to stage an afternoon rally, but weakened at the close to book fractional declines. The Dow Industrials finishing down 7 points (0.04%), the S&P 500 lost 2 points (0.08%) and the Nasdaq fell 3 points (0.06%). The PowerShares Golden Dragon Halter USX China ETF (PGJ) strengthened slightly, gaining 0.05 points to finish up 0.15% at 32.66.

A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and chief analyst of Cabot China & Emerging Markets Report since 2005.

Subscriber comments on Cabot China & Emerging Market Report


Paul Goodwin can be found on Google Plus.

Headline News

Stock Picks

Ctrip

China's biggest travel-related website.

Palo Alto Networks

One of the biggest threats to every business that uses the Internet is network security, which means good times for Palo Alto Networks, one of the premier network security providers in the world.

Costco

Costco is one of our best-performing positions and a major beneficiary of low oil prices.

Cabot Wealth Advisory

A Riches to Rags Story

By Timothy Lutts on April 20, 2015

Visiting the beautiful little city of Boulder, Colorado recently, my wife and I stumbled on an extravagant little house. Named the Arnett-Fullen house for its first and subsequent owners, it’s the most iconic historic home in Boulder, Colorado, and its story is interesting. It starts with Anthony Arnett. Read More >

Finding Investing Heroes

By Paul Goodwin on April 17, 2015

In the investment world, I’d caution any beginning investor that a story from someone who has made a fortune may not be a reliable roadmap for replicating their success. You wouldn’t, for instance, go out and buy a lottery ticket because you’ve read a glowing account of some bozo who used his wife’s measurements and the number of letters in his daughters’ names to pick the winning numbers.Read More >

How to Find the Best Stock Buys

By J. Royden Ward on April 16, 2015

An article in this week’s Barron’s suggests that contrarian investors can easily beat any of the stock market indexes.Read More >