EWM (Malaysia Index ETF) gapped above the downtrend line to break out today. Personally, I’m passing on going long for now due to the elevated risk for a reversal in the US markets but will continue to monitor EWM for a possible entry & just wanted to pass it along as an unofficial trade idea for those interested with the first two horizontal resistance lines as potential targets.
EWM daily June 20th
Basically, if I thought that the US markets had a good chance of another 10%+ upside from here, I would take this breakout & make EWM an official trade & still might but for now, I’d prefer to see if this post-FOMC rally in the US markets sticks or gets faded in the coming sessions. With that being said, depending on how the charts play out in the near-term, I may revisit EWM as a potential official trade soon.
What is this? The chart will not enlarge. Is it in reference to the NG question?
It’s a Malaysia ETF chart. Hover your mouse pointer over his opening sentence and it will indicate a link – click the link to open the chart.
Suppliers moving to SE Asia from China in the news not sure if it matters
Thanks. I saw those headlines as well recently. Certainly can’t hurt the Malaysian & other SE Asian economies but my reason for holding off on taking the breakout personally (or adding EWM as an official trade today) is that I want to let the post-FOMC dust settle first & that means watching to see if today’s rally sticks & gets built upon or faded by tomorrow or early next week (which would be my guess). Yes, emerging markets don’t always trade in lock-step & sometimes trade inversely to US markets but if the US markets are at or near a… Read more »