Hiding in EEM not a bad idea EEM has been consolidating above the trend line entire 2021. As long as it above $50, I am hiding in China names till we correct in US names
EEM trade ideas
EEM. Emerging markets could drop within the last leg downCorrective structures are tricky, the wave b emerged within a complex structure.
The map posted in 2018 appeared to be valid (see related) and I dropped it early.
This is a refreshed chart of the old map.
The wave B slighlty exceeded the top of wave A.
The wave C down could emerge in 5 waves down within the strong impulse or an ending diagonal.
Price could retest the valley of wave A in the area of $18.
EEM - What is it really made of? 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%.
Today:
Taiwan Semiconductor Manufacturing Co Ltd 6.41%
Tencent Holdings Ltd 5.59%
Alibaba Group Holding Ltd 5.30%
Samsung Electronics Co Ltd 4.24%
Meituan 1.67%
Naspers Ltd Class N 1.20%
Reliance Industries Ltd Shs Dematerialised 0.93%
China Construction Bank Corp Class H 0.92%
Vale SA 0.90%
JD JD.Com Inc 0.81%
If a breakout in EEM happens, it is really a story of China, Taiwan, and South Korea. Are they really "emerging"? Where are the South American and African equities? And the South-East Asian countries?
EEM 62% PoP for quick 18% profit spreadQuick 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: $846 (max loss without management at expiry, no way to let this happen!)
Tasty IVR: 12
Expiry: 13 days
Sell 2 EEM May21' 55 Put
Buy 2 EEM May21' 50 Put
Credit Put spread for 0.77cr each, because IVR is average
Stop/my risk management : Closing immediately if daily candle is closing BELOW the box, max loss in my calculations in this case could be 150$. Probability of loss in this way: ~20% .
Take profit strategy: 65% of max.profit in this case with auto sell order at 0.27db. Probability of profit this way: ~80%.
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
Anyway: HIT THE LIKE BUTTON BELOW , and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview !
Bullish Triangle in Emerging MarketsThe 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 process.
That was followed by a series of higher lows under $54.50. The result is a bullish triangle that’s squeezed into an increasingly tight range.
Third, the consolidation has occurred along the 100-day simple moving average (SMA) and below the 50-day SMA.
Next, the 8-day exponential moving average (EMA) just rose above the 21-day EMA. That’s often used as a signal for shorter-term momentum truing more bullish.
Finally, MACD has been steadily rising all month.
Traders may want to watch for a potential breakout from this range.
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Emerging Markets Failing at 50-day MAEEM clearly finding sellers at a declining 50-day moving average and now appears to breaking down from a bear flag. Risk-off behavior
$spy $eem fixing to play catchup with rest of the marketEasily a 7% move possible vs max upside in spy of 2-5
$EEM dump - pullback is about to become way more pronouncedWatch out for continued pullback amongst many names. EEM looks to be heading to sub-50. #bearlyfe
Diamond dump into S wave
BTD on Emerging MarketsEmerging 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
$EEM -Uptrend hmm not mid term Feb has created a bearish pin barEmerging market trend has kind of broken out of the consolidation but yet rejected from prior high so until it is north of that nothing concrete. It is still in a long-term uptrend.
EEM, bullish long term, but quick short/putLong term is bullish. However, quick 1 week short for day trader.
EEM filling out 5th wave, target 62-68Chart looks very similar to the NASDAQ in terms of how high it has gone off the Feb highs. Considering this bullishness, I have drawn a very shallow wave 2 retracement once the 5th wave has filled out, and also from a fundamental perspective, countries like China are recovering at a much more rapid rate than compared to the US, for example. The wave 2 retracement is anywhere in between the purple target box.
Disclaimer: The proceeding content is informational only and based on information available when created. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you.
Copyright Rohan Karunaratne 2021
EEM. Emerging Market Index Fund. Correction could be over.Earlier I posted maps for EEM consolidation (see related).
This last sharp move makes me thinking of a completion of the correction.
Then we got the contracting flat WXY.
Triangle could be the next alternative ABCDE.
Target will be at 75 then.
MSCI EM STRONG BUYEnd of multi-years consolidation, Break out, Buy and hold long terme to create your wealth.
EEM to head back down to create line C of a ABC correctionThis correlates well with the dollar index - Would short
EEM on the cusp of breakout EEM ETF is going to break out from the multi-year bear phase. The monthly chart of EEM Oct 1st, 2007 was 55.83$, 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.
Emerging Markets leading the COVID reboundSince 3/23/20 when all three bottomed out, the SPX (green) has outperformed the Europe, Australia, Asia, and Far East ETF (blue, ticker symbol EFA), but both are lagging behind the Emerging Markets ETF (orange, ticker symbol EEM).
The SPX has been leading most of the way, but last month the Emerging Markets became #1.
Investors have banked on strong recovery potential in the emerging markets.
EEM breakout ?Emerging Markets 12 years sideways and now break to upside? With a weak and sideways Dollar would make sence and could last for a few years.
