Country Funds

The large majority of the ETFs are Bull Funds and very few are leveraged. BZQ, EEV, EWV, and FXP are the 2 x leveraged Bear Funds while EDZ is a 3 x leveraged Bear Fund. There are no leveraged Bull Funds in this list.

Below, under “Comments, Analysis, and Recommendations”, I will write my comments for the Country Funds giving you my chart analysis. I want to give you good evidence as to why I believe a specific Country Fund is heading higher or lower. I base my analysis on several technical tools. I use Exponential Moving Averages, Elliott Wave Analysis, Fibonacci, Japanese Candlestick patterns, trend lines, and support/resistance lines.

My goal is to provide you with the information needed so you can make the best trading decisions. My goal is also to help you to become profitable and most of all to help keep you from loosing a ton of money. I will provide you the potential price targets to take profits and stop loss levels to help preserve your trading capital in these Country Funds.

Click on the desired Country Funds link below to view the chart.

Comments, Analysis, and Recommendations

It does not look good for the Country Funds. Many of the Emerging Markets have been considerably weaker than the U.S. Market. Today’s price action did not help. Most of the Country Funds fell today from the TAZ. TAZ is the Traders Action Zone. This is the area between two moving averages which when the price moves into this area, it proves most of the time good buying opportunities in an up trending market and shorting opportunities in a bear market.

Since the 13 EMA is below the 55 EMA in these funds, shorting opportunities have arisen. The trend is down and looks to continue that way for a while. It is not surprising with all the news we have been hearing concerning the financial weakness of many countries.

The correction looks to be complete in many of these funds. Most present a five-wave pattern to the down side with a correction or bounce from the 2/5/10 lows. A five-wave pattern down from here is the first signal that the next leg lower is about to begin and most of these funds only show three waves down right now. That will change with one more push lower on Wednesday. A drop below the 2/5/10 low will confirm that the next leg lower is underway.

Be a smart trader!

Craig Wells

2/8/10

All the Country Funds have the 13 EMA below the 55 EMA, which indicates that the trend is down. This is more significant for the ETFs that have the price below the 233 EMA such as, EFA, EWG, EWI, EWO, FXI, and IEV.

The Country Funds, which the 13 EMA is below the 55 EMA, but are above the 233 EMA has shown their strength is this latest decline. The 233 EMA has actually been support for many of these funds, however, the price in most of these funds have pushed back up against the 13 EMA. This support and resistance is squeezing the price and will most likely see a big move whichever direction it breaks out. These ETFs include EPP, EWA, EWC, EWD, EWH, EWJ, EWM, EWS, EWT, EWW, EWY, and EWZ.

The Bear Funds are settling down to the 55 EMA and is resting on support. These funds are set to move higher in the next couple of days. These funds are potentially set to bring big profits as the price moves higher in the next few days or weeks.

The trend is down and as long as there are lower highs and lows, the trend will remain down. I do not recommend trying to pick a bottom in these funds. The best way to trade these funds is to sell short on the bounces to the resistance levels. Many of these funds have reached such levels. The prices in many of these funds are set to head lower for lower lows. The critical resistance for many of these funds is the 2/3/10 high and the critical support is the 2/5/10 low. These levels are the points if broken will indicate where the prices are heading in the next week or two.

Be a smart trader!

Craig Wells

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