WallStTrader
Short

Time to short Emerging Markets - EEM

AMEX:EEM   ISHARES TRUST MSCI EMG MKTS ETF USD DIS
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.
Hi Dude

I have almost the same count than you but I think the 5th wave is not over yet, according to my count we're on the sub 4 of the 5th wave, my support for this sub 4 is around 37.20 (sma 50 days and 61% of the sub 3 wave) and my target for the 5-5 wave is 39.30 (resistance line if you join 2014 and 2015 peaks)
Reply
WallStTrader isaacmo84
@isaacmo84, Thanks for the comment. I have visualized your count and how it compares to mine. I do think 37.20 area will support, however for the ABC first corrective move. The reasoning I believe 39.15 was the high for Wave 5 is because it was the .786 fib extension of Wave 3. Nonetheless, thank you for sharing your opinion. Its nice to know someone has a very similar count.

Good trading,
Dylan
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