MSCI Emerging Index Dropping. EEMWave A being followed by Wave B in an overall upward Zigzag. Momentum dropping and pivot already confirmed. Good luck and stay safe.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
EEM trade ideas
EEM. Emerging markets could drop within the last leg downCorrective structures are tricky, the wave b emerged within a complex structure.
The map posted in 2018 appeared to be valid (see related) and I dropped it early.
This is a refreshed chart of the old map.
The wave B slighlty exceeded the top of wave A.
The wave C down could emerge in 5 waves down within the strong impulse or an ending diagonal.
Price could retest the valley of wave A in the area of $18.
EEM - What is it really made of? EEM isn't of the same composition as it was in the good ol' 2000s. Today, China and Taiwan make up approximately 52% of EEM, whereas in 2005 it was only about 25%.
Today:
Taiwan Semiconductor Manufacturing Co Ltd 6.41%
Tencent Holdings Ltd 5.59%
Alibaba Group Holding Ltd 5.30%
Samsung Electronics Co Ltd 4.24%
Meituan 1.67%
Naspers Ltd Class N 1.20%
Reliance Industries Ltd Shs Dematerialised 0.93%
China Construction Bank Corp Class H 0.92%
Vale SA 0.90%
JD JD.Com Inc 0.81%
If a breakout in EEM happens, it is really a story of China, Taiwan, and South Korea. Are they really "emerging"? Where are the South American and African equities? And the South-East Asian countries?
EEM 62% PoP for quick 18% profit spreadQuick option spread play for the next 2 weeks:
* 1 year trendline still holding
* bullish trend
Max profit: $154
Probability of Profit: 62%
Profit Target relative to my Buying Power: 18%
Max loss with my risk management: ~$150
Req. Buy Power: $846 (max loss without management at expiry, no way to let this happen!)
Tasty IVR: 12
Expiry: 13 days
Sell 2 EEM May21' 55 Put
Buy 2 EEM May21' 50 Put
Credit Put spread for 0.77cr each, because IVR is average
Stop/my risk management : Closing immediately if daily candle is closing BELOW the box, max loss in my calculations in this case could be 150$. Probability of loss in this way: ~20% .
Take profit strategy: 65% of max.profit in this case with auto sell order at 0.27db. Probability of profit this way: ~80%.
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
Anyway: HIT THE LIKE BUTTON BELOW , and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview !
Bullish Triangle in Emerging MarketsThe iShares Emerging Markets ETF is one of the most active symbols for tracking global growth. It rallied hard in the fourth quarter, stalled in February and has been consolidating since.
Now some interesting patterns may be appearing on the chart.
First, EEM dove below $52 a month ago but quickly snapped back. It formed a “kicker” candlestick pattern in the process.
That was followed by a series of higher lows under $54.50. The result is a bullish triangle that’s squeezed into an increasingly tight range.
Third, the consolidation has occurred along the 100-day simple moving average (SMA) and below the 50-day SMA.
Next, the 8-day exponential moving average (EMA) just rose above the 21-day EMA. That’s often used as a signal for shorter-term momentum truing more bullish.
Finally, MACD has been steadily rising all month.
Traders may want to watch for a potential breakout from this range.
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BTD on Emerging MarketsEmerging Market are the last to join the rebound from the interest rate sell off where other factors include the dollar (DXY) strengthening. However the fundamentals of the emerging markets are still strong as the global economy rebounds and the coronavirus restrictions cease. Buy the dip
EEM filling out 5th wave, target 62-68Chart looks very similar to the NASDAQ in terms of how high it has gone off the Feb highs. Considering this bullishness, I have drawn a very shallow wave 2 retracement once the 5th wave has filled out, and also from a fundamental perspective, countries like China are recovering at a much more rapid rate than compared to the US, for example. The wave 2 retracement is anywhere in between the purple target box.
Disclaimer: The proceeding content is informational only and based on information available when created. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you.
Copyright Rohan Karunaratne 2021
EEM. Emerging Market Index Fund. Correction could be over.Earlier I posted maps for EEM consolidation (see related).
This last sharp move makes me thinking of a completion of the correction.
Then we got the contracting flat WXY.
Triangle could be the next alternative ABCDE.
Target will be at 75 then.