Finland’s benchmark index has broken out of a 12-month consolidation to new all-time highs.
Last week, we noted the attempted breakout above decade-long resistance by Italy’s stock market. Given the recent weakness in the Euro, it’s not surprising to see stock markets in other countries in the region enjoying gains as well, of late. Some of these markets have exhibited relative strength, regardless of the action in the Euro, however. As we have been emphasizing for several months to members of The Lyons Share, these are the countries on which we want to be focusing any European equity exposure.
One of those countries that we wrote about a few weeks ago is Norway, which continues its ascent into all-time high ground. Probably our favorite European market has been Finland. We have been touting the chart of Finland’s benchmark OMX Index for the past several months, in anticipation of an eventual breakout from a 12-month consolidation pattern. As of the past few days, it appears that the breakout has finally arrived.
After the year-long consolidation, the OMX should have plenty of energy to follow through on the breakout and continue its trek into all-time high ground. How high might it go? While we don’t like to place “targets” on markets, one area above that contains a solid cluster of potential extension and resistance possibilities is around 5000. Incidentally, that would represent a further rise of nearly 20%.
If you’d like assistance in identifying favorable international markets and other “out of the box” opportunities, we publish RS rankings of the 1000 most liquid ETF’s every week for members of The Lyons Share. Or if you’re interested in the “all-access” version of our charts and research, check out TLS. You can follow our investment process and posture every day, including insights into what we’re looking to buy and sell and when. Thanks for reading!
*Photo of Paavo Nurmi, a Finnish runner who dominated middle-distance and long-distance running in the early 20th century. Nicknamed the “Flying Finn”, he is one of the most decorated athletes in Olympic history.
Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.