The idea is to buy EEM and then to short-sell IVVon a relative basis.
A price action above 0.0955 supports a bullish trend direction. Crossing below this level will negate the bullish stance.
Adjust Target level as the price action is developing further.
MACD bullish crossover applicable (see the lower panel)
US technical recession confirmed with Atlanta Fed GDPNow data indicating retraction in Q2, two consecutive negative GDP prints. While US stock markets have already experienced the worst first half of the year in more than half a century.
Typically in a bull market, this would signal the bottom of a retracement is already in or nearby. Unfortunately, this isn't a...
Emerging Market equities have underperformed the US for the last decade, and has now reached past lows during the dot-com bubble.
Looks poised for another reversion in the next 10 years!
EM is cheaper (has already fallen mainly due to weaknesses in Chinese equities)
DXY likely to weaken in the long-term, which should benefit EM equities.
Monthly RSI also seem...
recently bouncing off of potential trendline support.
RSI is also at very attractive levels.
HOWEVER, be aware that dark blue line support has historically been more enduring. Which would be the buy point should we enter recession in the very near future.
Nonetheless, a good place to start adding long-term positions. Also, relative performance to US and...
EEM now near 41, has already fallen more than 30% from Feb2021 top at 57.19. Two weeks ago it fell to 39 the green VWAP from 2016 & bounced with a weekly hammer candle. It is now being rejected by a FIB CHANNEL level near the yellow 41-42 pivot zone. Holding this zone will see more upside maybe up to 44 or 46 before a c-wave down.
If 41/42 does not hold, there are...
MSCI Index seems bottoming out on monthly chart
Buying should start immediately soon in all Emerging Markets in upcoming days .
#nify #niftybank #commodities
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...
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...
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.
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.
War and Russia's weight on the ETF itself made it brake support and enter bear territory. Extreme volatility and high risk means SELL, given the confirmation in price action.
AMEX:EEM
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
