The Emerging Markets Rally is Here

So says Mark Mobius.

http://bloomberg.com/apps/news?pid=20601087&sid=aykWeSWzvFsA&refer=home

IS this for real or not, we don't know.

We see strong base building in, but not limited to Japanese small caps, Korean shares, Taiwanese shares, Hong Kong shares, and Russian shares. We don't see these markets dipping to new lows.

Many of these markets crashed in October and early November. Unlike the US, they did not pierce those lows and appear to have successfully retested the bottom.

Our call on Russian equities, was spot on and the RTS has rallied 40% in less than 2 months.

The technicals, simple ones at that, help us line up the probabilities so that they are in our favor. The best advice we can give is to never attempt to catch a falling knife.