Sunday, June 8, 2008
RedDirt's Weekly Update
My vacation is about to end so it's time I get back to work. This weekly update will start with a look at the BricTrade. Since my last post I was stopped out of the EEB trade. My favorite indicator for the BricTrade, The HongKong Option Index , is once again in oversold territory according to the stochastic. The past two weeks haven't been kind to the individual BRIC country ETF's as India has led the decline with a drop of 7.42%, China fell 5.36%, Brazil dropped 2.72% while the strength of the group was Russia posting a 1.89% loss. Bloomberg reported that Citigroup strategist Geoffrey Dennis is predicting a 10% drop for the Brazilian market. Brazil and Russia have recently outperformed the EEB whereas China and India have underperformed. This may all be about to change. India is trading at about a 50% discount to where it was in early 2008. I'll be looking for some sort of reversal candle now that the INP is trading near a level of support on the chart. Wouldn't it be great to see a Hammer candlestick with high volume as the INP test support?Now for a look at our markets. The Weekly S&P500 chart stopped it's drop at the center line of the Bollinger band. This weekly drop came with higher than average volume and the Daily Chart has once again closed below it's trading bands and the 65 day moving average. Looks as though the "next shoe" may be about to drop. I'm looking at the inverted ETF's for a trade.
The DecisionMoose posted by William Dirlam has continued to stay CASH for sometime now. I really don't see a switch coming anytime soon. Click HERE to see the latest Moosecall. Don't forget to click the refresh button on your browser to make sure the info is timely.
I'll be running the GarpStocks Scan later today. So you can click this LINK to see the most recent list. Thanks for stopping by and good luck with all your trades.
Labels: BRIC ETF's, candlestick charts, decisionmoose, garp stocks, RedDirts BRIC Trade, sp500, weekly update
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