A Quick Grid of Overseas ETFs and Trends

12/22/2014 7:00 am EST

Focus: ETFS

Corey Rosenbloom

Founder and President, Afraid to Trade

By studying a quick chart grid, technician Corey Rosenbloom, of AfraidToTrade.com, points out that it is relatively easy to highlight the strongest and weakest country ETFs, even with trends shifting and reversing.

With trends shifting and reversing across global markets, let’s step back and take a quick look at a simple chart grid of country ETFs and note signs of relative strength or weakness.

Here’s the chart grid:

chart
Click to Enlarge

The grid above only highlights the MSCI iShares Exchange Trade Funds (ETFs) so be sure to go beyond this grid for a more complex picture of international markets.

Here’s a grid to identify the symbols and countries represented above (you can use this grid as a reference):

chart
Click to Enlarge

Just by studying the quick chart grid above, let’s highlight the strongest and weakest country ETFs.

I highlighted the ‘relative weakness’ in red to represent trends where price is at or very new new 2014 lows.

Also, note that virtually all country ETF funds listed above peaked in mid-2014 and have been trending lower.

Specifically, weakness is occurring in Australia, Austria, Canada, France, Hong Kong, Italy, Malaysia, Mexico, Singapore and Spain.

It’s probably not appropriate to call it ‘relative strength’ but Belgium, Japan, the Netherlands, and Sweden are showing prices rallying up (or higher) than their 2014 October lows.

Compare this grid to other related country ETFs along with the US S&P 500 and index ETFs.

Focus on strength and trade with the relative strength leadership instead of trying to call an elusive bottom (reversal) in weak names; the same logic applies to stocks and country ETFs.

By Corey Rosenbloom, CMT, Trader and Blogger, AfraidToTrade.com

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