EEM Emerging Mkt formed a big Violet wedge since the 2007-2008 crash. It currently gapped down & broke 40, a 0.618 level. If it does not reclaim 40 in the next few days, then It will go down to
37 to retest the lower edge of this wedge. 37 is also a 1.618 retracement of the latest rally.
See the 3 zones in the chart. Red is the sell zone. Yellow is the neutral...
Just a little post to highlight that it is important to note when EEM is out of synch with S&P and ask why.
EEM often mirrors what the S&P does. As the U.S. stock market goes up and down it affects other countries.
BUT, it's also worth noting that, sometimes, emerging markets are affected by global market events before the S&P is. Which makes sense. A lot of...
A Wolfe Wave is a chart pattern composed of five wave patterns in price that imply an underlying equilibrium price. Investors who use this system time their trades based upon the resistance and support lines indicated by the pattern.
All the empires and dynasties I studied rose and declined in a classic Big Cycle that has clear markers that allow us to see where we are in it.
This Big Cycle produces swings between
1) peaceful and prosperous periods of great creativity and productivity that raise living standards a lot and
2) depression, revolution, and war periods when there is a lot of...
We are at the 55 Month Moving Average and it happens to align with an old Monthly Resistance that we are now testing as Support; If at any point we start to rally we will have MACD Hidden Bullish Divergence Develop on the Monthly Timeframe.
Below 0.1070 supports a bearish trend direction. Emerging market equities are likely to underperform Developed market equities.
Downside price momentum supports the bearish bias.
RSI leaves some room for downside potential.
Expect a pullback before the leg downwards might continue.
An M-top pattern also supports a bearish trend direction.
I think it is time for Emerging mkt to rise after falling near 20%. It has made a big flagpole & the flag is now at the 38.2% Fib retracement which is also a big support zone (45.68 to 47.50).
It had broken out of a BIG multi-year consolidation WEDGE last Jan 2021 to extend the 3rd leg of the flagpole & has re-entered inside this wedge to retest this impt support...
A bullish divergence with RSI has appeared on the daily relative strength chart of EEM/SPX
Also a falling wedge has broken out upwards
A period of "Relative" outperformance wrt to the S&P500 may be near for the Emerging Markets
Emerging Markets are showing signs of life at least for the short term. After years of underperformance discussed in previous graphs. EM is at extreme oversold lvls vs DM and showing signs of life. A weekly close above the recent downtrend (blue line) would be encouraging for a period of outperformance with eyes on our longer term charts previously published where...
Emerging Markets looking to me like we have put in a low with this Reverse Head and Shoulders Pattern. I've drawn in what I feel would be a proper neck line that we are over at this point. It is under both the 50 and 200 SMAs but it has regained both the 10 and 20 EMAs. I've taken a small position and my stop will be 48.80 where I would deem this idea void. Ideas,...
EEM is looking weak at the bottom of this range its been in for a few weeks, if market sell of continues we may see this break below 49/48.75 which is a clear break of the channel support. Next key level below 46.25, may see sell off to this level before prior bulls come in to defend.
The iShares MSCI Emerging Markets ETF is a good choice for today high IVR credit trade. High PoP, very predictable profit.
- high reward for Jan21 monthly expiry (mangeable with rolling) -> collecting credit
- breakeven point is far
- RSI is oversold.
Max profit: $92
Probability of 50%Profit: 84%
Profit Target relative to my Buying Power: 14%