Smoking Securities

Half Baked High Finance

Emerging Markets Breakout ($EEM)

with 3 comments

EEM090719While global markets are on the rise, emerging markets as represented by EEM are giving a clean signal to buy. A double top breakout in an uptrend above a rising Bollinger is a good reason to start a position or add more units and raise stops.

A move below 30.21 would warrant caution, but with fortune favoring the bulls, there is no reason to be scared of the odds. Growth abroad will prevent the apocalyptic economic prophecy that was foretold six months ago, one billion Chinese want iPhones, and I suspect the USD will take a beating.

Chinese small caps (HAO), India (EPI) and Chile (ECH) have led the way up, and I don’t see why they should stop now. Bullishness is through the roof, and so long as the price confirms this sentiment, it its wise to take advantage of the frenzy.

Advertisements

Written by chucklesamadeus

July 19, 2009 at 10:18 pm

3 Responses

Subscribe to comments with RSS.

  1. Hi Charles, sorry for my bargin in. I was wondering if you like to add in your Blogroll our URL: MarketFighter (www.marketfighter.com) and we’ll be happy to add yours. We’ve just starting with our website but we are sure it is an useful tool for traders. Take a look at it and please reply to me. Thanks and sorry again. Giorgio

    Giorgio

    July 20, 2009 at 2:25 am

  2. I’d be happy to, but ask again when you have more content and commentary, there isn’t much to go on yet.

    chucklesamadeus

    July 20, 2009 at 8:51 am

  3. Hi Charles,

    We agree with the potential for EEM. You might enjoy reading our reasoning with our latest post: http://www.thedailytradingreport.com/

    We are less technical based & can see quite a few fundamental signals across the bond, fx, & commodity markets that align.

    During the last “blip” we were encourage to see emerging market small caps hold up rather well.

    Matt Stone

    July 21, 2009 at 12:37 am


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: