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EEM

$EEM: Interesting indicator, flashing caution by mid DecemberEmerging markets are flashing an interesting signal here, the weekly trend is up, and strongly, but will expire its current advance by the week ending on Dec 18. If we get some kind of unexpected issue before COVID vaccines are widely available, we could get some kind of correction here perhaps. Alternatively, we get a sideways consolidation and the markets keep rallying until vaccines roll out, by March give or take. This is what many charts seem to indicate. Definitely vital to monitor the action here and be ready to react once we get confirmation of one or the other. Cheers, Ivan Labrie.
AMEX:EEM
by IvanLabrie
4
EEM - The Perfect HedgeHello Traders, As our followers know we remain bullish in the US equities however, there are definitely some signals that are pointing towards some more volatility. We're not ready to short the US market just yet but as the dollar rises we want to also leave some downside hedge. We'll be targeting EEM. Many emerging countries do not have enough dollar reserve to pay their debt. We believe that if there is any real downside to this market...the emerging market sector should get hit the hardest. Also in terms of technicals, EEM has been creating a topping pattern and has not broken below the support line unlike other US equities. Some would argue that there is a head and shoulder pattern on the daily. We're in this trade with a target of $42 strike by March 2021. *NOT A FINANCIAL ADVICE, THIS IS JUST OUR PERSPECTIVE AND WE DO NOT RECOMMEND ANY TRADES WE PUBLISH ON OUR CHANNEL. YOU WILL LOSE MONEY.
AMEX:EEMShort
by KoreanStreetBets
DXY - The Most Important Correlation to Watch!There is an old saying in technical analysis… If you can get the dollar right, everything else follows. So what are we seeing? We are seeing the dollar trending downwards. Dollar trending down has been one of the “machines” favorite things to chase as of late. There is a very high correlation to down dollar, up stocks. There is also a strong correlation to down dollar, up commodities. Again we also have down dollar, up emerging markets. Another lesser known correlation is down dollar, up crypto! If we break 92 on the DXY we can aim for the next target of 78. If we go to 78 on the DXY, we would probably see the SPX at 4000! So as the old saying goes, you get the dollar right and everything else follows! Keep in mind that there is a point when the falling dollar becomes bad for the bond market, and when the bond market starts going, then the stock market soon follows. For time frame, there can be 6 - 12 months before the intermarket trouble spills over to another market. So keep your head on a swivel!
TVC:DXYShort
by derzzycharts
Bullish like never before.Looking at charts from across the globe we found a very similar setup, triangle formations that are forming across the board in a timely manner. If we look deeper into what is going on we are going to get a pretty nice surprise. Let's start of with the Nikkei. The Nikkei has been on a consolidation pattern since the start of June and has just resolved within a clear break around it exactly one month after. This paired with global optimism that a second wave has been avoided in Asia thanks to great control sounds the bull bell, we might still see a deeper correction that could signal a potential long term buying opportunity. If we see the price of the Nikkei Holding above 22600 we could be up for a move towards 24k in the rest of the year. Exactly the same is going on across the board. Let's check Europe for an instance: For instance, the DAX is doing exactly the same being in a triangle consolidation pattern since the 3rd of June that has now broken above and is showing strength if it holds above 12.600. if things start to look clearer from here we might be looking at a potential move towards previous all-time-highs. Coincidence? Not really. Not confident enough? let's get to the juicy part, let's try and dig deeper into the abyss and look at what is going on in the US Markets. after all, EEUU markets drive most of the money flows right? A quick glance at the S&P500 might give you the chills. Why? Well, the market is exactly doing the same, but wait there is more to come, we are just getting started. Looks pretty familiar right? well, I can't say I didn't warn you. Global Markets took a hit and it hurt, but recovery is around the corner. Central banks are doing almost everything they can, Governments are supporting people like never before. and let's face it. A second wave is something bad but we are going to live with COVID-19 for a long time, we might just make it a profitable one. Not buying it yet? well, let's look at something even more interesting... What about the Dow Jones? is it anything closer to this? I mean what sector can be worst off in a pandemic right? Well, that's pretty much a very compelling view of global markets. However let's not take a pause and bring the big guns, as I said, we might as well just save the best for the end. Because it is yet to come. The dollar is breaking lower and this is just the cherry on top, we might as well just close here but not everything needs to be technical. Fundamentals are coming in stronger in the last few weeks, rates are lower than ever and the sentiment for the virus is shifting towards more "let's live with it and make the most of it" than rather being scared and locked down at home. Emerging Markets are doing their move higher with Chinese markets leading the way, the train is moving, the question is will you get in? Thanks for your time. Alejandro Franco R. www.billionideal.com Always Forward Capital
OANDA:SPX500USDLong
by afcapitaltrading
US vs. Emerging MarketsThe best-performing markets tend to flip flop every decade or so. For example, in 2000-2010, emerging markets outperformed US markets. In the following decade (2010-2020), US markets significantly outperformed and emerging underperformed. This concept is known as reversion to the mean - valuations get stretched in one direction, and eventually, it is bound to reverse to the historical mean. If we use Total Market Cap/GDP a metric (warren buffet's favourite metric for valuing the entire stock market), and this concept of reversion to the mean to get exact numbers for expected returns, here is what we get: Estimated Annualized Return (Next 10 Years, source: gurufocus.com) United States: 1% Emerging Markets: 23% Estimated Total Market Cap to GDP (Current, source: gurufocus.com) United States: 122% Emerging Markets: 40% Once this current recession/crash is over, I expect sideways movement and slow recovery for US stocks., vs. explosive growth for emerging markets similar to the 2000s. TL;DR: US market bad. Emerging markets good
AMEX:SPY
by delusional