EM Futures New High Is Bullish for Materials; Correlation Tight
The generic MSCI Emerging Markets Index Futures trade at their highest since February 2018, based on the Nov. 5 closing price. This is bullish for the Materials Select Sector ETF because it's most positively correlated to these futures over the past 250 trading days when compared with a group of stock futures and indices. Given this correlation, the Materials ETF traded at an all-time high as of Nov. 5. Freeport-McMoRan and Westrock formed bullish technical chart patterns during the past three weeks, as detected by Bloomberg's Automated Technical Pattern Recognition (ATPR) product. These companies' weightings in this ETF are 3.6% and 1.3%, respectively.
ATPR finds technical breakouts by systematically screening charts, using algorithms for an objective process.
The generic MSCI Emerging Markets Index Futures trade at their highest since February 2018, based on the Nov. 5 closing price. This is bullish for the Materials Select Sector ETF because it's most positively correlated to these futures over the past 250 trading days when compared with a group of stock futures and indices. Given this correlation, the Materials ETF traded at an all-time high as of Nov. 5. Freeport-McMoRan and Westrock formed bullish technical chart patterns during the past three weeks, as detected by Bloomberg's Automated Technical Pattern Recognition (ATPR) product. These companies' weightings in this ETF are 3.6% and 1.3%, respectively.
ATPR finds technical breakouts by systematically screening charts, using algorithms for an objective process.