Market Update – Mexico giving ground after 42% move from the lows in June ’12

By
A A A

Market Update Mexico ( EWW , quote ) - "Southern Texas" Weak.  Why?  Mexico has been in a deep swoon and has now broken the 200 day moving average support for the first time in over a year.

Image courtesy Jeinny Solis S.:http://www.everystockphoto.com/photographer.php?photographer_id=48577

The last time we saw Mexico break this technical level was in May/June of last year and before that we were in August '11.

The two reference points were dark and scary periods for emerging markets investing and so the question to ask for Mexico is are we in another one of those times for investing in this resilient country south of the border?

Mexican weakness (-12% off the recent top in 5 weeks can be traced to macro weakness. March IP and GDP numbers were very soft.

Mexico was a crowded and expensive market 5 weeks ago.  It may still be crowded and mildly expensive.

I don't expect this pullback to end quickly.  Seasonal factors and politics tell me this move lower has some legs before stabilizing.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

Referenced Stocks:

Emerging Money

Emerging Money

More from Emerging Money:

Related Videos

ColonialMills_USETBASITE
ColonialMills_USETBASITE            

Stocks

Referenced

Most Active by Volume

70,522,626
  • $73.7799 ▼ 2.74%
67,771,917
  • $9.47 ▼ 5.30%
53,218,555
  • $16.975 ▼ 0.09%
38,195,945
  • $32.517 ▼ 4.14%
37,526,809
  • $41.42 ▼ 1.57%
35,687,681
  • $11.41 ▲ 1.78%
30,483,330
  • $9.88 ▼ 9.85%
30,195,316
  • $4.595 ▼ 14.59%
As of 10/30/2014, 02:57 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com