Your Choice: The Frying Pan or the Fire

Selling out of U.S. stocks for emerging market exposure right now would be like jumping out of the frying pan right into the fire... January 28, 2014     Your Choice: The Frying Pan or the Fire   Emerging markets are a mess More gasoline for the fire Plus: Finding value in an unexpected place...   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner As worried investors continue to sell stocks, you might think it's time to look overseas for some bargains. Let me save you the trouble-- don't do it. Selling out of U.S. stocks for emerging market exposure right now would be like jumping out of the frying pan right into the fire... Sure, I've talked about emerging markets a lot over the past year. Heck, we even traded some of them last summer when they bottomed and shot higher. I even noted that the potential breakout move in China's Shanghai Composite was one of my favorite setups of 2014. But now, just a few weeks into January, the charts look broken. Cracks are appearing across the globe. From China growth scares to Turkey's borrowing to Argentina's currency meltdown, it feels as if a new crisis tosses more gasoline on the fire every day. "Emerging market equities just posted their biggest drop in almost seven months, overshadowed only by the most extensive selloff seen in emerging market currencies in five years," explains Rude researcher Noah Sugarman. While the S&P has dropped 3.6% to start the year, the iShares MSCI Emerging Markets ETF (NYSE:EEM) is down almost 9%. That's a nasty drop for a basket of names that looked to be getting its act together just a few months ago... Expect some wild action from emerging markets over the next several months. Ultimately, I think many of these names will move lower. My friend J.C. Parets, president of Eagle Bay Capital, wrote on his blog that he is a seller of EEM on any strength. He notes the false breakout in emerging markets three months ago will most likely cause a much more violent move lower. Toss your support levels out the window--this wildfire could get out of control very quickly... Noah and I dug up a fresh emerging market play for you in today's PRO. This one looks ripe for a quick trade. Click here to get access to this trade now...         Analyst Unveils "Hacked" NSA Method… One of our analysts here at Agora Financial has made a shocking discovery. Over the last few months, he has taken one of the NSA's powerhouse surveillance methods… and found a way to transplant it on the stock market! What's more… studies have shown a method like this can enjoy an accuracy of 86%. Some folks who have used similar methods have already seen incredible once-in-a-lifetime results. One man was able to finally hit it big after nine years by using a method like this "hacked" NSA strategy. He turned $40,000 into $20 million! Now our man has figured it out… and at great personal risk, he wants to share it with you. Click here now to watch his urgent presentation, before it's taken offline.           Rude Numbers Targets, Predictions and Wild Guesses   2009 was the last time the S&P had this bad of a January start. The broad-market index is already down 4% this year. 1,878 American newspapers were in print in 1940, according to Bloomberg. 74 years later, only 1,427 remain. $4 trillion in assets and counting are listed on the Fed's balance sheet. That's an increase of 38% from this time last year. 42% of stocks trading on major US exchanges are above their respective 50-day moving averages. The market has shifted to a short-term corrective stance... 1,782 is where you'll find S&P futures early this morning. The broad market is once again looking for a higher open. Will it stick?     Rude Trends When to Buy... When to Sell   My colleague Thompson Clark is back with another hidden microcap idea. This time, he's found value in an unexpected place... "I first thought the technology was impractical," Thompson explains. "I wrote it off thinking it was a dying product. I was wrong... "Now, it's not just I who have made these thinking errors. I believe players in this multibillion-dollar industry are guilty of the same. With the price now at rock-bottom lows, the industry undergoing a massive shift and the aggressive involvement of insiders, today's recommendation looks like a winner." The best part? "Realizing this error now will reward you very handsomely," Thompson says. "After all, the rest of market participants don't seem to have caught on." Here's Thompson's full recommendation--hot off the presses... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   2 Words Obama Doesn't Want You to Know Breakthrough Fuel That Makes Oil Drilling Obsolete Do You Have Any of These Coins in Your Pocket?     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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