derzzycharts
Long

If Country Indexes Had Personalities

AMEX:EFNL   ISHARES TRUST
This is always a fun way to view the markets. Today we are going to look at a risk on barometer that may be unknown to most. When Finland is breaking out, we tend to take notice. This is a good indication that money is flowing to risk on assets. If country indexes had personalities, Finland would be on a motorcycle pole vaulting with a hockey stick! All jokes aside, let's hop into the chart.

We saw Finland basing for a couple months and now we have a breakout. We have to clear through some of the overhead supply first, but we are not far from all time highs. If we were to see all time highs in Finland, that would surely be bullish right? Here on the weekly chart, we have a bullish cross on the stochastic RSI and a bullish regime on the %SMA oscillator. Don’t fight an uptrend. As far as next major resistance levels, we have some Fibonacci levels that coincide with all time highs from the last two swing high/swing low market structures. This is the “super risk on” environment and would be a blue sky breakout in Finland. These are all signs of good macro market breadth . Rather than looking at the SPY’s all day as an analyst, remember that there are many things you can do to analyze the markets.

Happy Trading!

Comments

This is an interesting post! :) I really liked it, really!
+1 Reply
derzzycharts XForceGlobal
@XForceGlobal, thanks mate appreciated it.
Reply
Very interesting explanations and excesses, thank you very much.
From my humble point of view, I would say that when Finland breaks out or collapses, the World's Economy will care a wet fart.
If the Country Indexes had their own personality, Finland would probably be the last country that everyone else would pay attention to, economically speaking. YMMV, sorry.
+1 Reply
@ReallyMe thanks for your input! Risk apatite and money flow are important and the "Helsinki Indicator" tells us more than most.
Reply
ReallyMe derzzycharts
@derzzycharts, I didn't know this about OMXH25 before but I will keep an eye on it, maybe there is some truth to it. We will see. Thanks & take care!
+1 Reply
@ReallyMe, another good one is the ETF FM. If this is trending upwards, that means money is flowing to places like Morocco and Kuwait. This is a sign of a risk on environments. It can also be used as a "micro cap" for the countries. So it typically fails first before the developed country indexes.
+1 Reply
Excellent idea and good analysis
+1 Reply
@Pollard thanks mate!
Reply
This actually helped alot, thank you
+1 Reply
derzzycharts bledsoe9555
@bledsoe9555 happy to help!
Reply
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