Do they look-alike? I’m not talking about the Twins above, I am referring to the Euro and Brazil ETF (EWZ) below! The Brazil ETF seems to follow the twist and turns of the Euro very closely. Notice that the Euro seems to be in the driver’s seat, making tops and bottoms a little before Brazil.
CLICK ON CHART TO ENLARGE
Suggested to pick up EWZ & EEM in the “Early Bird” post (see post here). Both have good short-term gains, just short of 10%. With the Euro close to the top of its falling channel resistance and creating a bearish rising wedge at (3), keep tight stops in play. Should the Euro break support and the Dollar break resistance, we will “harvest” these gains if the stop isn’t already triggered.
Don’t forget, that if the Euro does break support here, it will put DOWNWARD PRESSURE on STOCKS, BONDS and COMMODITIES!
Thanks Kimbler.
We from Brazil, loved your graphics.
Thanks again.
Regards
Storms – Brazil
Larry…Great work and Thank you for sharing.
I like calling it the trampoline effect..”everything is going up and down together”, except the U.S. Dollar!
It is this high correlation that has had me concerned, due to the Dollar appeared to be close to support and with so few bullish the dollar and something like 95% Euro Bulls.
IF…IF, the currency worm changes, I don’t think most will be saying yahoo!
For giggles, just ran a monthly ROC correlation matrix for Eur/USD, FXE, EWM: EWM is .86 correlated ytd to both.
EEM had a high of 47.03 2 days ago, so set at 5% would be 44.68? Thanks.
Yes…most trailing stops do this automatically.
Do you set your trailing stop from the most recent intra day high?
I think today can be represented by this youtube video:
http://www.youtube.com/watch?v=k1900A_ktEg
it doesn’t make me feel good that Apple and GS blow away earnings and the market finds a reason to go down. It sort of makes me wonder what will make this market go higher if not earnings…??
Anyone else following V or MA?
I smell a possible paradigm shift in the making. Euo and bzq are up significantly this morning.