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GLOBAL STOCK MARKETS POINT 
TO FURTHER GAINS AHEAD...
by Jes Black
Editor & Publisher FX Money Trends
November 15, 2004
(published Nov. 21)

The bullish resolution we were looking for in stocks last week came to pass with the S&P 500 rising above the March 2002 peak to a high of 1184. Our target level of 1245 is likely to be reached by the end of this year, but we now anticipate a large correction ahead of the next up leg.

Subscribers got a free peak into our newly launched service ETF Global Research where we cover fifteen foreign stock markets and their exchange rates to help US investors better understand these markets. Non members can also access our first report for free at http://www.fxmoneytrends.com/ETFproducts.htm

Interestingly, nearly every market we examined from the local exchange to the US based ETF showed a price target about 10% higher than current levels. Moreover, looking at the relative strength between the Nasdaq and the Dow it appears that the Nasdaq will outperform the Dow and rally back to its 2001 and 2002 double top at 0.21. The relative strength between high yield funds and the 10-year note also shows that the ratio is headed higher in the months ahead, which should mean that economic prospects remain favorable at least until the end of this year.

In addition, if the Nasdaq is set to outperform then one of our favorite long positions in Taiwan iShares EWT should rally in kind as shares like Taiwan semiconductors and United Microelectronics make up a combined 18% of the fund. As subscribers to our first issue of ETF Global Research Weekly know, we expect Taiwan to move substantially higher over the coming months.

© 2004 Jes Black
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