Thursday, August 23, 2007

Mexico, Japan, Patterson, and Nabors

The above is the Japan small cap fund. It has broken and it makes me wonder if this is a prelude to a break of the EWJ. (3rd chart)

As home to the worlds 3rd richest man do we take this as a sign of the times to exit the party. If you follow Pemex (and its decline) and are familiar with how vitally important it is to Mexico's economic survival you might ask, what's next. The U.S. has the current immigration problem against the above backdrop, now I ask, what happens when or if it turns? Might be worth consideration of speculators as well as policy makers.

Many call this a cheap market but as we all know or should know by now cheap things can get even cheaper. If the Japan small cap fund is any indication (1st chart) this could be in trouble.

Nabors needs to hold here. Nuff said.

Ditto for Patterson.
Remember that often with technical analysis, simple can often be elegant. Good trading to you all.

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