Week 15 Global Markets Trending and Performance
I am looking at the Global Markets after 2 weeks which is not my intent. I do think there are good potential trading opportunities in there and want to keep a close eye on it. I have been quite focused on China FXI and made some trades to the upside for profits.
Summary
Trending Heat Map
The picture looks good. Some markets (mostly in Asia) are showing some initial weakness, but that could be just some breathing exercises before they continue their momentum.
Performance
There are many good pointers:
Mexico is the only one positive over 1 year.
Hong Kong, Malaysia, China, India and Vietnam are down for the year so far.
Brazil and Latin America may be breaking out.
The challenge is that only EEM and FXI can be traded reasonably using options due to volume and spreads issues. The other possibility for me is to trade leveraged ETFs of which there are only a few.
The primary reason I review these global markets is to get a good idea how they are behaving vis-a-vis the S&P 500. Or, if one market is sticking out in the opposite direction to the others. Right now, they are more or less trending similarly.
EWZ Brazil Chart
EWZ has the best performance so far in April. It is hard to trade due to the volatility which one can see from the chart. It tends to gap up or down big and then end up filling that gap. We have a similar situation right now. Plus, the price is also hitting up against the 150-day moving average. I am going to avoid.
EWW Mexico Chart
This is a beautiful chart and price could be going higher from here if it can break through what seems to have become a resistance. There could be a bit of a pullback here again in which case I will probably make a trade to the upside. MEXX is a 3x leveraged instrument for Mexico.
EWY South Korea Chart
It looks good. I would look for a pullback to the 150-day moving average and then do a trade to the upside. KORU is a 3x leveraged instrument for South Korea.
China FXI Chart
The price looks like breaking down especially considering those unfilled gaps below. I will be watching and looking to make trades to the downside. YANG is a -3x leveraged instrument and the options are also tradable.