China's ETF (FXI; top chart) has vaulted impressively above its November lows, now leading most world indexes in intermediate-term relative strength.
Japan's ETF (EWJ; middle chart) has tried to pierce the $8.00 level on three separate occasions in October and November and never hit that level on Friday. Though its downside resilience has been impressive, it remains far from its November peak, still thus far tracing a pattern of lower highs.
South Africa's ETF (EZA; bottom chart) has also shown nice downside resilience, but remains below its November highs.
Most U.S. sectors remain below their November peaks; one that is close is the housing index ($HGX). With relative strength in China and U.S. housing, it's fair to say that the current market has gained a bit of risk appetite.
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2 comments:
FXI looks like it broke out today. But I like to check the underlying foreign index because the US-listed etf has some distortion inherent in it's chart: currency distortion,for instance. The moves of the USD distort a foreign etf.
The Hang Seng index chart itself doesn't look quite as bullish yet as does FXI. $HSI closed Mon. at 15,044. But it has not yet broken out above the intraday high from early Nov. of 15,317. I plan to wait for that confirmation break out in the Hang Seng, and then buy FXI.
Hi Brett,
I recently started looking at ETF's myself and found them showing very interesting behaviours one might normally not expect. That's why I posted a 1x1 on ETF trading, where I looked in detail about certain characteristics of ETF's which you will not find when trading regular stocks. Might be of interest to your readers: http://globetrader.blogspot.com/2008/12/1x1-of-etf-trading.html
Best regards,
Chris
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