Wednesday, February 23, 2011

Emerging Markets are in trouble with a Capital T

The problems in the emerging world markets is reflected in the price trends of the MSCI Emerging Markets ETF (EEM).  If the credit markets in Greece, Italy, Spain, Portugal and Ireland aren't enough red flags of you then look at the problems in Algeria, Tunisia, Libya, Egypt, Yemen and Iran.

All of these concerns are manifested in the price trends of EEM

The iShares MSCI Emerging Markets Index Fund (the "Fund") seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Index (the "Underlying Index"). The Underlying Index is designed to measure equity market performance in the global emerging markets. The Fund generally invests at least 90% of its assets in the securities of its Underlying Index and in depositary receipts representing securities in its Underlying Index.
Technical Factors:
  • 80% Barchart technical sell signal
  • Trend Spotter (tm) sell signal
  • Trading below its 20, 50 and 100 day moving averages
  • 6.64% off its recent high
  • Relative Strength Index is 41.20% and falling
Jim Van Meerten is a portfolio advisor to Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on Barchart.com  in his daily blog -- Barchart Portfolio Blogs.



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