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EFA

IHDG: A Rising Dollar is No Problem For This Foreign ETFThe US Dollar Index (DXY) has gotten off to a rip-roaring start to 2024. Up more than 2% on the year, the greenback’s ascent comes after significant declines over the final handful of months in 2023. That is usually a headwind for equities, particularly shares of companies domiciled overseas. Not surprisingly, we’ve seen many foreign index funds suffer relative to the S&P 500 thus far in January. To combat these currency concerns, hedging FX exposure reaps rewards in these environments. The WisdomTree International Hedged Quality Dividend Growth Fund ETF (IHDG) does just that. In addition to mitigating the risks of a rising dollar, the strategy aims to own high-quality dividend growth companies. While this ETF can be a replacement for a high-yield or large-cap position among long-term investors, technicians might look at its chart and see an intriguing development. My featured chart is a breakout in IHDG. A rally above the key $41 level tells me there is plenty of strength away from the US mega-cap tech stocks. IHDG features a rising 200-day moving average with its price above both the 200dma and nearer-term 50dma. What’s more, following the breakout above $41, next resistance could come into play around its late 2021 highs above $46, while ample volume by price in the $36 to $41 range should offer cushion on any pullbacks. So, don’t discount non-US equities even as the SPX and QQQ lead the global markets. If the trend of a stronger DXY continues, IHDG may keep on shining versus foreign index equity ETFs.
AMEX:IHDGLong
by mikezaccardi
Falling Dollar Creates Opportunity For Outperformance AMEX:SPY TVC:DXY AMEX:EFA The opportunity presented by a falling dollar: These are simple Yearly Candles. The chart depicts how the falling dollar can provide outperformance in foreign equities vs domestic equities. The top chart is simply a chart of the dollar index. The middle chart is EFA vs SPY. The bottom chart is that of the EFA. Take notice as the dollar weakens - represented in the first chart by red candles - that EFA outperforms SPY as denoted in the second chart by white candles. Since 2002 There have been 9 years in which EFA outperformed the SPY. 7 of the years have been associated with a falling dollar. One of the off years was 2005. The dollar was up, but the overall long term trend was still down. The other off year, was this past year. Even though the dollar was strong it peaked in Q4 and fell precipitately into the new year kickstarting new strength in EFA. The 9 years of outperformance generated positive returns in 7 of those years. The 2 years of negative performance were in 2002 and in 2022. Two of the worst years on record risk assets globally. Those seven years generated returns of: 2003: 38.15% 2004: 17.16% 2005: 11.26% 2006: 23.20% 2007: 7.21% 2012: 14.80% 2017: 21.79% Average Return: 19.08% What is noticeable is how strong the returns can be when the dollar enters a secular decline. 2003 through 2007 was particularly outstanding. During that time the dollar fell by roughly 34%. While there hasn't been a secular decline in the dollar since then, I think it pays to keep an open mind to the possibilities. Funds for the falling dollar: $EFA $VEU $VEA $VXUS
TVC:DXYLong
by Breakout_Charts
3
THE MONTH AHEAD (IRA): EX. CANADA/U.S. ETF'S FOR DIVIDENDSIt shouldn't come as a massive shocker to anyone that the U.S. market has been and has gotten even more expensive. For an investor that is just starting out, it is enormously frustrating, since virtually everything is at the top of a very long term trajectory with the broad market yet again knocking at the door of all-time-highs. Here are a few acquisition ideas for ex. U.S./Canada exchange-traded funds that pay in excess of SPY (1.90%), IWM (1.33%), QQQ (.84%), and DIA (2.21%) and TLT (average 20-year maturity treasuries) (2.22%). To put things in some additional context: HYG (High Yield Corporate Bonds) is paying 5.29% (paid monthly), EMB (Emerging Market Bonds) -- 5.45%, XLU (Utilities) -- 2.93% (paid quarterly), and IYR (REIT) -- 2.63%.* EEM: Emerging Market. It gets huge volume (79 million 90-day) and is extremely liquid on the options side of things. The downside is that you get about TLT is currently paying in yield -- 2.22%, paid out quarterly, and fund managers had to muck it up by sticking a whole bunch of China in there. If I wanted to play a Chinese exchange-traded fund, I'd play one (e.g., FXI). EFA: Behind the funky acronym (MSCI EAFE), this is basically a world excluding the U.S. and Canada exchange-traded fund. Sporting a 3.18% yield, it pays dividends every six months, trades healthy share volume (90-day average 18.3 million), and has good options expiry availability and liquidity, a must for investors looking to go short put/acquire/cover. EWA: Australia. Granted, the share volume isn't great (1.7 million 90-day), but the yield is 5.54%. Expiry availability isn't fantastic and neither is option liquidity. Dividends pay out twice a year. 21.82/share as of Friday close. EWG: Germany. 90-day 1.98 million shares average. 2.83% paid once a year. Decent expiry availability/liquidity. 26.44/share as of Friday close. EWI: Italy. 90-day 1.90 million shares on average. 4.63% paid out once every six months. Expiry availability/liquidity isn't great, with the general solution being to be "fill picky." 26.95 as of Friday close. EWW: Mexico. 90-day 3.20 million shares traded on average. 4.17% paid out twice a year. Good expiry availability and option liquidity. 43.64 as of Friday close. EWT: Taiwan. 90-day 5.80 million shares traded. 2.74% paid out once a year. Expiry availability isn't great and neither is options liquidity. 36.71 as of Friday close. EWZ: Brazil. 90-day 21.58 million shares traded. 2.71% paid out every six months. Excellent expiry availability/options liquidity. 42.11 as of Friday close. RSX: Russia. 90-day 5.58 million shares traded. 4.31% yield paid out once a year. Expiry availability/options liquidity decent and decent. 22.51 as of Friday close. The general play on these would be short put, acquire, then cover. Naturally, you'll probably want to drill into the charts on each of these to determine which ones might be trading at a discount. * -- IYR, XLU, and EMB have ripped higher recently, so are kind of out of range of prices at which I'd like to acquire. Forever the optimist, however, I've got a couple "not a penny more" short puts hanging out there in XLU and HYG. (See Posts Below).
AMEX:EFA
by NaughtyPines
S&P - bubble has poppedDear reader, I am no expert (in fact I am a researcher in bioimaging), but from my small experience in trading, there are obvious reasons to think that S&P500 and other market indicators are undergoing a bubble pop. Following my previous raw analyses, I provide this detailed update. Market exponentially increased past years, formed a Head & Shoulder (bearish) pattern, the parabola is broken, a descending triangle formed (bearish), failed to break out, we went one step below, pennant formed and broke downward again... Another bad news is, there is no convincing support line below. next we are going down toward 2450. after that... Like it or not this pattern is the very same pattern that we saw for Bitcoin! (which is, by the way, still going down after a 70% correction). Some people are still hoping at this stage, for some breakout upward. But markets react according to a cycle. It is the "complacency" (or I like to say "delusional stage") of the well known Wall Street Market Cycle chart. (google it if you don't know) And sooner than you think it will go down very fast. "Those who hesitate are left behind" said a famous trader called Peter (one of my mentor) Not financial advice, just sharing my thoughts.
SP:SPXShort
by TheLegoCrypto
Neutral trade on EFA (Laddered Straddles)I didn't have any positions on EFA and With IV Rank at 47, I wanted to sell some premium. We are out of the ideal 45 days expiration window and since my portfolio theta is pretty low right now I decided to do laddered straddles. Selling the 62 Straddle with 32 days to expiration and another one with 60 days to expiration. This will give us an avg date of expiration of 46. I got a total of $526 in credit. This is close to a 50% chance trade, but I will look to take profit early to increase my probabilities.
AMEX:EFA
by AlexanderGotay
GET OUT OF THE S&P RUT: LOOK AT ETF'S AND INDIESIf you have ever spent more than a few hours in the Stocks and Indices chat room, you'll soon get the impression that the trading universe is seemingly made up primarily of E-Mini S&P Futures, SPX CFD's, and/or SPY (I probably exaggerate a touch, but that's the overall impression I get), along with a repeated frustration with the way the S&P is behaving in one way or another: the old "it shouldn't be here," "a correction is due," "who's buying way up here," etc. In short, some are frustrated, for various reasons, with the S&P or other broad U.S. market instruments. Well, there's hope for you out there ... . And that's because the trading universe is made up of a ton of instruments that focus on various sectors, various markets, and individual companies. Naturally, some of these don't trade 24/5 like SPX500 or /ES, but if you can't figure out how the S&P, /ES, or SPX500 should be traded here, you should quit banging your head against the wall and move on to other instruments. (Unless you enjoy banging your head against a wall ... ). Some of the more obvious things to look at are naturally instruments like GLD (the gold ETF), SLV (the silver ETF), and TLT (the treasuries ETF). For non-US broad market exposure, look at things like EFA (the world market, ex. Canada and the U.S. ETF) and EEM (the emerging markets ETF). And for U.S. equities sector exposure, look at sector SPDR's, such as XME (mining), XBI (biotech), XRT (retail), XLF (financials), etc. Naturally, getting into individual stocks can be a bit of a slog due to the number of companies involved. However, you can contract that universe to liquid stocks trading an average than 2 million shares daily and that are within the price range you want to devote to a play.
AMEX:EFA
by NaughtyPines