Week 16 Global Markets Trending and Performance
Markets closed in the red today and the VIX actually went up +5% to just over 17. I saw several stocks and ETFs turning bearish (at least short-term) per my model. The Russell 2000 is about to have its 50-day moving average dip below its 200-day moving average. That is known as a “death cross”. The question of course will be to see whether that also brings the other major indexes down. More on that in the next several days. Today I review the Global Markets.
Summary
The trending certainly has deteriorated somewhat with Asian markets not doing well. I will be watching Emerging Markets EEM closely. I am short KWEB (China Internet as I find that a better trade instrument than FXI).
Trending Heat Map
AIA (Asia 50) turned short-term bearish. Price also dipped below its 50-day moving average.
EWT Taiwan turned perfectly bearish.
FXI China turned short-term bearish.
Performance
Mexico EWW has been the story for this year as well as over 1-year trailing. It is the only one with 1-year gains. I would not put new money on it though. Mexico is rising primarily because of US near-shoring work there and if there is a slowdown in the US there will be a slowdown in Mexico as well.
There is nothing else that jumps out as a trade to me for now.
I am short China through the KWEB as I found that a better instrument to trade than FXI. KWEB also is trending short-term bearish and looks like will get weaker.
Emerging Markets EEM is a big instrument (heavily traded) and I will keep an eye on that going forward. The chart does not look good although it is yet to turn bearish.