Foreign ETF Update...

By: Jes Black | Wed, Oct 20, 2004
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We alerted subscribers two months ago to the likely outperformance by a select group of foreign ETFs which we predicted would gain on the back of a falling dollar. Not only have these stocks hedged our bearish bets on the US equity market but they have made sizeable gains. This short note updates our position on the various ETFs we cover.

Taiwan iShares EWT has the best technical outlook as it held above key support at $9.5 when we first mentioned it back in August. The rally slightly penetrated downtrend resistance above $11 this month and has since consolidated above key support at $10.50. Recall that two weeks ago we highlighted this support level as critical and today's rally through downtrend resistance may indicate that EWT is ready for its next advance towards our target of $14. Risk is below $10.50.

Australia iShares EWA continue to gain on the back of renewed strength in commodity prices and the Australian dollar. Australia's stock market continues to reach new all time highs yet remains well off the radar of the media. As such we remain confident that there are further gains ahead in line with our bullish outlook on AUD/USD. Risk is below $14.50.

Japan iShares rebounded sharply this morning as both the Nikkei and JPY rallied together. We alerted subscribers two weeks ago to the breakout in JPY and feel that EWJ is equally well positioned to rally. Above $10 encourages further gains. Risk is below $9.5.

FX Money Trends provides analysis of the foreign ETF and FX markets three times a week in the subscription service FX Focus. For more information please visit www.fxmoneytrends.com/products.htm


 

Jes Black

Author: Jes Black

Jes Black
fx Money Trends

Jes Black, hedge fund manager at Black Flag Capital Partners, specializes in foreign exchange and global macro trends. Prior to organizing the fund he helped MG Financial Group launch Forexnews.com. In the summer of 2004 Mr. Black formed FX Money Trends, a research firm catering to professional traders.

Mr. Black holds a degree in economics from the University of Kansas and an MBA from the ESC in France. His market commentary is often featured in the Wall Street Journal, Financial Times and Reuters. He has also written numerous strategy pieces for Futures magazine. To find out more about the funds research letter visit www.fxmoneytrends.com/products.html. Qualified prospective investors can find out more about Black Flag Capital Partners by e-mailing info@blackflagfund.com

Under no circumstances does the information contained in this site represent a recommendation to buy, sell or hold any security.

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