Sign Of Optimism


Positive signs are starting to appear in emerging markets. Does that bode well for the US?

Jordan Kotick, global head of technical analysis at Barclays Capital likes the action in the Bovespa, Brazil’s stock market.

Because Brazil is rich with commodities that nation emerged as key player in the last bull market. Companies such as Petrobras and Vale came to the forefront of global awareness as they supplied the world with iron ore, coal, oil and more.

And those commodities should play a central role once again, when world economies embark on a new program of expansion.

In fact, on CNBC's "Closing Bell" Kotick tells us he sees technical signs that expansion is starting to happen right now. He says, “there are signs that the Bovespa has formed a base and is in the process of bottoming.”

Clearly that’s a positive for Brazil but how about the good ol’ USA?

Yes, it translates well for America's stock market too, according to Kotick. As the emerging markets start to stabilize we should all benefit because “the bull market is like a big jig saw puzzle. The pieces all fit together.”

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Trader disclosure: On Dec. 18th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (RIMM) Call Spread; Pete Najarian Owns (UYG) And Is Short (UYG) Calls; Pete Najarian Owns (HIG) Calls And Is Short (HIG); Pete Najarian Owns (PCLN) Call Spread; Finerman's Firm Owns (IBB), (MSFT), (UNH), (WLP), (AET); Finerman's Firm Owns (ROH) Calls; Finerman's Firm Owns (OIH) Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (BBT), (USO)

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO: Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

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