Trailing stop hit on iShares MSCI Chile Fund (ECH); RSI buy signals for iShares FTSE/Xinhua China 25 Index (FXI) & SPDR S&P Emerging Europe (GUR) – A significant tell? July 28, 2010
Posted by Marlowe Cassetti in ECH, FXI, GUR.trackback
RSI’s trend following module generated two buy signals today:
Buy 181 shares iShares FTSE/Xinhua China 25 Index (FXI) Stop = -$5.51 Target = +$16.53 Volatility = 5.35%
Buy 148 shares SPDR S&P Emerging Europe (GUR) Stop = -$6.75 Target = +$20.26 Volatility = 6.21%
Remember the shares noted are for a $1,000 risk (1% of a $100,000 portfolio) so adjust your order accordingly for your risk profile. Also, the target value is where to initiate a 30%R trailing stop.
Let’s take a look at their two charts.
They both have made good upward progress since their July 20th lows. FXI has underperformed the general market, as measured by the equal weighted S&P 500 (RSP), while GUR has outperformed since late May. Because these two have broken out and have paused, I have no problem if you decide to wait until they finish their pullback before buying them.
Will I buy them? Yes, I need to put the profits from ECH to work. It won’t earn much in money market funds will it? Will I buy tomorrow morning? Maybe so, maybe so.
I spent my last blog detailing how I set the trailing stop for iShares MSCI Chile Investable Market Index Fund (ECH). A market downdraft today tripped the stop and the position was closed and a nice profit booked.
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Of interest, is that RSI’s recent picks, including today, have been in the direction of foreign ETFs. Is this a significant tell? Only time will tell, but so far the call on ECH has been good and hopefully a harbinger of good things yet to come. We shall see. Catch you later.
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