Longer term trade here with fundamentals and technicals aligning.
Technicals
I will be shorting
EEM
as it has completed 5 waves inside of a long-term downside Elliot wave. We will be looking to short
EEM
as it completes a long-term wave 5.
Fundamentals
The US Economy is strong. The Fed will more than likely hike rates in March or soon after. The rate hike with strengthen our dollar, therefore weakening other countries currency. Trade with the US will also be "more expensive" for Emerging Markets. We feel
EEM
will be hurt by the current US Economy.
Post your thoughts and comments below.
Technicals
I will be shorting
EEM
as it has completed 5 waves inside of a long-term downside Elliot wave. We will be looking to short
EEM
as it completes a long-term wave 5. Fundamentals
The US Economy is strong. The Fed will more than likely hike rates in March or soon after. The rate hike with strengthen our dollar, therefore weakening other countries currency. Trade with the US will also be "more expensive" for Emerging Markets. We feel
EEM
will be hurt by the current US Economy. Post your thoughts and comments below.