World (ex-US) ticks a new ATHThe global ETF, ACWX, is making not only a new high for the cycle, but a new all-time high. Interestingly, it is trending DOWN vs. the US SPX/SPY.
ACWX trade ideas
$ACWX relative to $SPY potential (3/5)Conviction: 3/5
Overall still in LT (2009) down channel, so trade is quite risky... you are trading against the trend...
HOWEVER:
bounced off MT (2018) trend support
RSI looks pretty good
SPY ourperformance against world is pretty outrageous in the last 2 years, so some mean-reversion is likely
Trade duration... 3-5 months.
Much better trade is to wait for breakout confirmation, and wait for entry from likely retest.
$ACWX decision point!Unclear what is going to happen... probably not a good idea to trade this right now.
Can trade small position within the channel, although risky to trade against the trend...
Bull case:
potential bull flag setup
good relative value (in terms of performance) to S&P 500
holding peak-price support from 2017 so far
better to wait for confirmation of bull flag?
Bear case:
touching medium/long-term (2011) channel resistance
RSI-W at low levels, but not oversold yet
Why I'm still bullish on ACWX global ex US etfACWX recently bounced with 2 engulfing candles with volume.
It then reclaims the weekly green ema50.
It seems to be completing a bullish flag.
The violet ema100(also coincides with the median line of pitchfork),
should provide a good support
where institutions will buy.
I would be less bullish for the ACWI global etf with US,
which will depend a lot on the performance of US stocks.
considering US needs a retracement from an impressive 2020 & 2022.
2022 going forward, I think will be the time for other global
countries to shine especially the emerging markets.
Pls make own analysis & comment.
