SP500/EUSTX50 - Better Relative "value" in European equities

252 1 7
We can not just bet which way a certain equity index will move, but we can also bet on their relative performance regardless the general direction.

The chart represents the relative performance of SP500             Indx             over the Eurostoxx50 composite. The candles are set to Heiken Ashi to filter noise a bit.
For now we see the following signs:
- the ratio reached previous high (means SP500             outperformed) but Heiken Ashi candles signal that this performance may switch back in favour of Europe.
- The "Price" is still above the Kumo and Kijun Sen, but the lower horizontal line has become very important given that Kijun Sen and Senkou B stay together at same level
- Slow Stoch is on sell
- MACD gives a sell signal, negative divergence persist since last top -> this may also indicate we had a double top in

Basically with increased possibility for a full QE from ECB and hawkish-like stance from FED the policy divergence itself also indicates that European equities can start performing better in the future.
Again, this doesn't mean being general bullish or bearish on equities. The spread (ratio) compression can happen both on a general bull or on a general bear market.

This one worked in a nice and quick way. Getting close to target! Watch for Heiken Ashi exhaustion signals.
Or... who knows what the ECB brings on Thursday... maybe start taking profit.
+1 Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out