This column was originally published on RealMoney on Oct. 19 at 8:49 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
Could there be anything more predictable than financial pundits touting that India is the place to invest?
Naturally, that market has done very nicely this year, and with a 20% gain it's far outpacing the lackluster
Yet, although I'm all in favor of momentum investing, the chart below shows that new buyers may be a bit late to the party.
Using a chart of
The India Fund
to represent the Indian market, you can see that the stock did nothing for a long time.
Only in the past four months did it make its move, but that move might already be over.
High-volume down days, or in this case weeks, are often a prelude to a selloff, or at least a lengthy move sideways.
That's been the case for the past two years, and what's happened recently?
Some high-volume down weeks.
That should tell you to let the pundits keep touting The India Fund, but for you personally to stay away for now.
At a minimum, at least let the stock make a new high before wading in.
Today, charts for the
Energy Select Sector SPDR
Charts produced by TC2000, which is a registered trademark of
Worden Brothers Inc.
And that is the final word from Sydney, where with two episodes to go on my season one DVD, I've concluded
just can't be based in reality. I mean there's no way the men look dirtier and dirtier each episode, while the women look like they just passed through the sample counter at Sephora!
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Gary B. Smith is a freelance writer who trades for his own account from his Maryland home using technical analysis. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks.
Smith writes a daily technical analysis column for RealMoney.com and also produces a daily premium product for TheStreet.com called The Chartman's Top Stocks --
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