EEM isn't of the same composition as it was in the good ol' 2000s. Today, China and Taiwan make up approximately 52% of EEM, whereas in 2005 it was only about 25%.
Taiwan Semiconductor Manufacturing Co Ltd 6.41%
Tencent Holdings Ltd 5.59%
Alibaba Group Holding Ltd 5.30%
Samsung Electronics Co Ltd 4.24%
Naspers Ltd Class N 1.20%
With Asia struggling and China being overweighted in EEM ETF we will likely
open up lower tomorrow. The problem is this, We double top on the
big picture and barely hanging on to previous highs in a bearish structure that
will likely follow through in a wave 3 down.
Quick option spread play for the next 2 weeks:
* 1 year trendline still holding
* bullish trend
Max profit: $154
Probability of Profit: 62%
Profit Target relative to my Buying Power: 18%
Max loss with my risk management: ~$150
Req. Buy Power: $846 (max loss without management at expiry, no way to let this happen!)
Tasty IVR: 12
Expiry: 13 days
The iShares Emerging Markets ETF is one of the most active symbols for tracking global growth. It rallied hard in the fourth quarter, stalled in February and has been consolidating since.
Now some interesting patterns may be appearing on the chart.
First, EEM dove below $52 a month ago but quickly snapped back. It formed a “kicker” candlestick pattern in the...
Emerging Market are the last to join the rebound from the interest rate sell off where other factors include the dollar (DXY) strengthening. However the fundamentals of the emerging markets are still strong as the global economy rebounds and the coronavirus restrictions cease. Buy the dip
Chart looks very similar to the NASDAQ in terms of how high it has gone off the Feb highs. Considering this bullishness, I have drawn a very shallow wave 2 retracement once the 5th wave has filled out, and also from a fundamental perspective, countries like China are recovering at a much more rapid rate than compared to the US, for example. The wave 2 retracement...
EEM ETF is going to break out from the multi-year bear phase. The monthly chart of EEM Oct 1st, 2007 was 55.83$, the current price is very close and looks bullish for the long term with 0% interest, and the US $$ money flowing to EEM is inevitable. EEM will outperform S&P.