Broad based Emerging Markets ETF (EEM) and Brazil ETF (EWZ) both find themselves at the top of a falling channel that has been in place since early 2008. If you believe in trading the range, harvest right now. If you would like to score on defense, this is an ideal entry point with a stop should resistance be taken out.
If you are open to scoring on defense the ETF’s that one can use are BZQ (Brazil inverse) and EEV (Emerging Markets inverse). Place a stop 4% above current prices. If this falling channel is finally taken out to the upside, we will follow the breakout. Until then, let the Power of the Pattern be your friend.
As you are aware, the Euro/Yen is on multi-month support right now. If support fails, stock markets around the world will be under pressure. Watch this support line, it is the key!!!
looks like time to pull the sails in Chris