NFTRH+; Emerging Markets at Target…

The title is purposely left vague for public viewing.

With all due respect for my often-repeated refrain that targets are not stop signs, I thought it would be appropriate to highlight the EMs as a potential shorting opportunity because of the combo of EM at target and my current view that the US dollar will find support for a vigorous and extended bounce, at least. The EMs, unlike commodities, have flourished as an anti-USD play.

Here is a chart similar to one we used in 2016 to illustrate a bottoming pattern (as I recall, I did not ride this one very far but did better with a very similar pattern on AAXJ). Anyway, the measurement from the low to the neckline is about 8. Add that to the neckline breakout around 34 and voila, you get 42.

Consider this something to keep an eye on at least, if you have interest in finding coming macro short ideas. If USD firms, this overbought segment could take a good hit.


A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.