Emerging Market ETF Soars Following U.S. Fed Loans
Stock-Markets / Emerging Markets Oct 30, 2008 - 01:37 PM GMTBy: Mike_Paulenoff
The Fed's decision to "selectively" lend $30 billion (each) to Mexico, Brazil, S. Korea and Singapore to try to ensure financial stability in the emerging markets triggered a late-session pop in the iShares Emerging Markets Fund ETF (AMEX: EEM) -- notwithstanding the plunge in ALL equity indices during the final 10 minutes of trading yesterday -- which extended into this morning.
Let's notice that today's up-gap thrust the EEM to new recovery highs off of the October 27 low at 18.90. Let's also notice that my underlying hourly momentum gauge (RSI) has climbed to a new high for the move (but not yet overbought), which confirms the EEM strength and projects prices towards a test of the Sept-Oct downtrend line, now at 25.90.
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By Mike Paulenoff
Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction
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