Special Bulletin September 13, 2016
The chart that shows the action of Chinese ADRs on U.S. exchanges is looking quite healthy, clearly stronger than most of its U.S. counterparts. But despite the continuing Buy signal from the Cabot Emerging Markets Timer, one of our stocks is not pulling its weight. The stock is Telkom Indonesia (TLK), and it has been in a downtrend since it finished a multi-month run on August 1.
We have stayed with TLK in the hope that it would get going again, but we are a little apprehensive that the weak U.S. market might be weighing on it. There hasn’t been any negative news, but the sellers are getting the best of the buyers right now. It’s best to take our small loss and reduce our exposure.
We recommend selling TLK and holding the cash.
Sell: Telkom Indonesia (TLK).