| Bullish & Bearish
positions are based on Trend. Trend is determined
by proprietary, non-discretionary trend indicators.
The following analysis attempts to forecast what
we can expect over the coming weeks and months.
Analysis, by its very nature, is subjective. Buy
and sell decisions are not based on this analysis,
but on the current trend. Over time, trading trends
is where profits are greatest. For this analysis
we used As of August 15, 2010 we
are using the iShares MSCI EAFE Index Fund (EFA).
International Funds Chart
Analysis
Last week we wrote:
"Considering all the bad news in Cyprus and the negative reactions by all the European markets, not to mention markets worldwide, the international strategy held up fairly well. Declines stopped at the 50-day moving average and markets ended the week on the upside."
This week:
Another week of crisis in various areas, from the banking crisis in Cyprus affecting the entire European community to the threats of nuclear war from North Korea that are concerning China, Japan and South Korean.
The United States is the target for these threats of war but there is a huge ocean in between us. North Korean has never spanned it with a rocket. So our markets completely ignored this one but the rhetoric is extremely threatening, or ridiculous, however you may see it.
Nevertheless, international markets were mostly lower for the week.
The iShares MSCI EAFE Index Fund (EFA) used in this strategy have support at the 50% retracement support line at 55.81 and then the 61.8% retracement support line at 54.82.
We use the iShares MSCI EAFE Index
Fund - EFA in this strategy.
This strategy is BULLISH and in the Ishares MSCI EAFE Index Fund
(EFA)
iShares MSCI EAFE Index Fund - EFA
Weekly Chart
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BULLISH:
