Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (56108)

4/29/2012 11:26:23 AM

From: Return to Sender

1 Recommendation Respond to of 95587

Amateur Investors Weekend Market Analysis (4/28/12)

amateur-investor.net

The Global Dow Index (GDOW) shows a far different picture of world market conditions than the current US Market. For a description of the Global Dow you can go to Wikipedia however here is a breakdown by % of each country. Notice US Companies still make up 42.3% of the GDOW.


USA                                42.27%
Japan                                9.97%
Great Britain            8.30%
France                         6.85%
Germany                4.74%
Switzerland             4.62%
China                             3.05%
India                                2.39%
Spain                              2.29%
Hong Kong              2.20%
Brazil                           1.86%
Canada                       1.64%
South Korea        1.52%
Australia                  1.37%
Italy                                 1.15%
Mexico                      0.96%
Taiwan                        0.79%
Portugal                  0.73%
Finland                  0.68%
Sweden                      0.64%
Russia                0.54%
Greece                      0.44%
Norway                    0.40%
Denmark               0.32%
Netherlands           0.29%

As you can see there is a large divergence developing between the GDOW and the Dow as it has rallied above its April 2011 high while the GDOW hasn't come even close. Notice this is the first major divergence between the two since the GDOW started in 2001.

Meanwhile there is also a clearly defined Head and Shoulders Top pattern in the GDOW. Thus if the rest of the world continues to have problems, which will be reflected in the GDOW, it's hard to imagine this won't have an affect on the US Market in the future.