One of the noteworthy developments in recent days has been the move in Emerging Markets. Hurt by the double whammy of a hawkish Fed and trade war fears between the United States and China, emerging market went into a tailspin lately. The iShares MSCI Emerging Markets ETF (EEM) fell 1.4 percent Thursday, bringing its YTD lost up 7.8 percent, underperformed the S&P by a wide margin. Now the question is whether recent pullback is a pause that refreshes or it’s a beginning of something worse? Below is an update look at a trade in EEM.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.
Chart 1.1 – iShares MSCI Emerging Markets ETF (weekly)
Our “U.S. Market Trading Map” painted EEM bars in red (sell) – see area ‘A’ in the chart. After a strong run of outperformance since early 2016, EEM peaked in early 2018 and trended lower. The early June selloff pushed EEM below the 4-year moving average, the level that offered strong support since the ETF reached an interim low in early 2016. This week’s downside follow-through confirmed last week’s bearish break…Click here to read more.
You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.
This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?
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