Most investors erroneously assume that global markets all move in unison. Consider the facts.
In 2005, the DJIA finished the year with a 0.5% loss while Asian (and European) stocks gained between 20% and 60%. In the November 2008-March 2009 period, as the Dow kept falling, China's Shanghai Composite was happily rising.
Each global stock index usually stands at its own Elliott wave juncture. So you shouldn't be surprised to learn that the latest global stock market jitters look different in the charts of the DJIA vs. the NIKKEI or SENSEX.
How different, and what do these differences mean for the trend from here?
In the August issue:
SENSEX and Terrorism: Shortly after the 2008 low in Asian stocks, terrorists killed 164 and injured 304 people in downtown Mumbai. Afterwards, Indian stocks rallied strongly. The wrong conclusion here is that terrorist attacks are "bullish." The right thing to do is realize that violent events occur at specific points of the stock market's Elliott wave pattern. In mid-July, terrorists again attacked Mumbai. Find out how this tragedy fits into India's larger Elliott wave picture in the opening section of the August Asian-Pacific Financial Forecast.
China: The spell of gloom that investors cast over the China story in recent months darkened even more in July. The Shanghai Composite stock index has spent the past 3 years in a sideways consolidation. Sideways market moves imply the lack of conviction on the part of investors. The good news is that sooner or later, every sideways move ends -- often with a bang. Read our detailed latest analysis of China's stocks and supporting factors to see how soon "the bang" may come for the Shanghai Composite -- and in which direction.
Hong Kong: From the Elliott wave perspective, the Hang Seng H-Financials Index's wave structure mirrors that of the Hang Seng. The August Asian-Pacific Financial Forecast explains what that means for the trend in these stocks.
Australia & Murdoch's News Corp.: The enormity of the recent News Corp. scandal reflects the long bear market in the company’s stock price. But it has weathered scandals before. News Corp. and the All Ordinaries stock index have similar wave patterns...find out what they are, and what their implications are, in the August issue.
Also: You also get latest updates on Singapore, Japan, Korea, Thailand and Taiwan. Tap into these insights now via a RISK-FREE subscription to The Asian-Pacific Financial Forecast Service (order below). You also get instant access to the still-valuable July 2011 issue.