Chile getting cold - ECH

Chile is having economic problems and that is reflected in the MSCI Chile ETF (ECH).  If its not already on your watch lists it should be.

The iShares MSCI Chile Investable Market Index Fund (the "Fund") seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Chile Investable Market Index (the "Underlying Index"). The Underlying Index is a free float- adjusted market capitalization index that is designed to measure broad based equity market performance in Chile. The Underlying Index consists of stocks traded primarily on the Santiago Stock Exchange. As of September 30, 2009, the Underlying Index's three largest sectors were utilities, materials and industrials. The Fund will at all times invest at least 90% of its assets in the securities of the Underlying Index or in depositary receipts representing securities in its Underlying Index.

Technical Factors:

• 100% Barchart technical sell signal
• Trend Spotter (tm) sell signal
• Trading below its 20,50 and 100 day moving averages
• 16.56% off its recent high
• Relative Strength Index 29.58% and tanking

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.

Through Marketocracy Capital Management  you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High portfolio.

Chile's economy is heating up

On Financial Tides ETF's are mainly found by using the technical analysis tools from BarChart. This week BarChart has pointed to the IShare Chile ETF (ECH). Emerging markets are growing far faster than the US economy and Chile has one of the fastest recovering economies anywhere.

All 13 of BarChart's technical indicators say buy for a 100% buy rating. ECH has hit new highs in 9 of the last 20 trading sessions and is presently 5 for 5 in the last week. Its has had a 28.47 price appreciation in the last 65 days and isn't skipping a beat.

On other sites Mark's checklist on Wall Street Survivor has a Survivor Sentiment on 5/5 and on Motely Fool the all member rating is 88 to 2 with their All Stars rating it 26 to 1.

I'm adding this to my EFT portfolio on Marketocracy.

Recommendation: Buy IShares Chile ETF -- ECH around 52 with a protective stop loss no higher than 48.

Disclosure: I do not own ECH at the time of this publication.

Jim Van Meerten is an investor who write on financial matters here and on Financial Tides. Please make a comment below or email FinancialTides@gmail.com