Wake up, pay attention
In the past I have mentioned Emerging Markets, specifically EEM, EPP and ILF.
The chart below is all data as of today's close of EEM some where between four and five years of data. Anything interesting strike you as you look at this chart?
The chart below is all data as of today's close of EEM some where between four and five years of data. Anything interesting strike you as you look at this chart?
- First thing I notice is that the 50 day moving average has not crossed the 200 day moving average, though it does look likely.
- Next I notice that the 50 day moving average has crossed the 200 day moving average twice before and it took roughly eight and nine months respectively from the previous high to regain that price level again. That would imply a 30% return from here $133 to $170 in July 2008.
- There is one more thing that is subtle, yet potentially powerful... the slope of the 200 day moving average. At times in the past it appears to have approached zero, but today it looks as if it might go negative.
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