World markets bottomed on Spetember 2022 and during the recovery, European stocks AMEX:FEZ outperformed US stocks TVC:DJI for 9 months Nos, for the last 3 months, US stocks are back in the leadership as the DJI/FEZ ratio broke its downtrend back in April; just weeks before the AMEX:FEZ broke its trendline That is why relative strength is so important,...
I am looking for a short entry to LVMUY based on the double top pattern. Louis Vuitton Moët Hennessy (LVMH) presents with two conflicting chart patterns, which are drawn using @LonesomeTheBlue's excellent HPP indicator at the default settings. Based on the statistics provided by that same indicator the Anti-Gartley is the slightly more compelling one with an 80%...
Following our initial publication, we've received some astute feedback that warrants further and more in-depth discussion. A reader correctly noted that the DAX and Euro STOXX 50 differ in their treatment of dividends - a detail we initially glossed over for simplicity's sake. The DAX is a performance index, including dividends, while the Euro STOXX 50 is a price...
FEZ bounced right off the volume shelf where the POC is as well. It looks like it's going to have another V-shaped recovery after selling off heavily. Its RSI is oversold, and MACD looks like it could be beginning to turn around. Overall the weekly chart looks good. It may be smart to wait for FEZ to crack $40.50 or $41 on high volume for extra confirmation....
I find AMEX:FEZ has been fairly accurate with the cycle analysis. You can see this tracing back on the chart over weeks and it sits almost perfectly with each dip (i've marked major ones in a yellow circle on the cycle). Feeling very good about FEZ also because the ETF crossed a major resistance which was the Big Red Line. Big Red line: Dec 07 all time high....
One of the most obvious - yet most overlooked relationships. Foreign Stock ETFs priced in USD and their relationship to fluctuations in the currency market. This chart depicts the Euro Stoxx 50 Index ETF (FEZ) which is priced in USD (blue line) and the level of out-performance during bear markets in the US Dollar. A strong US Dollar will eat away at returns in...
With the May 7 French election this Sunday the IV rank on FEZ today was decent at 46%. A 36/39/42 iron fly on June 16 expiry brought in $155 credit and $145 max loss. Breakevens at 37.45 and 40.55. By Monday morning I expect the IV to deflate quickly. After the first election round the IV in FEZ deflated 10 points when markets opened the next day. I'll...
We have the French election coming up and other than my trades on FXE I didn't have much on play for that. The IV Rank on FEZ is pretty high at 77 and I am selling the strangle with 30 days to go. After the first part of the election we might get a decent volatility. I am betting that Euro companies won't be impacted as much and I can get paid on the...
With VIX in another ebb and a paucity of high quality premium selling earnings plays in the making for next week with both high implied volatility rank and high implied volatility, I'm looking at exchange traded funds instead for potential plays. For instance, EWY, the South Korea exchange traded fund, makes sense in the current geopolitical environment, and its...
With four weeks or so until the next batch of earnings, I'm briefly turning my attention to exchange-traded funds to see if there's anything I can play to bridge the gap between earnings seasons. As with the previous several weeks, there isn't much; only three are near or above the 70th percentile for implied volatility over the past six months: FEZ, with an...
Although I always hate to miss putting on trades in a high volatility environment and generally don't like to exit setups merely because "something is happening," Brexit may be one of those special situations where it is likely that whichever way Brexit goes, the movement may be overly large, whether it takes the form of a relief rally on Bremain, or a...
RE: Global Macro Update Regarding European Union, #ECB, and UK The way the #Euro is strengthening relative to the Pound, and particularly the way the #CABLE $GBPUSD cross-rate is falling out of bed is about to unleash shock-waves of negative #sentiment through the European Euro STOXX Equity Markets $FEZ. According to RunningAlpha.com Capital Markets Intelligence,...
Confluence area is a bit higher, but price reached a polarity zone, where through the years changed from support to resistance enough times to mark her as area of interest. Fresh visit to this area has most of the times the probabilities leaning towards to rejection, before maybe higher, gun the shorts - like mine - and go deeper inside the confluence area. In...