Newsletter: Expect declines in these international ETFs

The corrective moves we’ve been tracking in some international stock ETFs appear to be nearing their end. Both the Italy ETF and the Brazil ETF are following the plan and may soon provide opportunities to catch some strong reversals. As a reader of the free...

MSCI Italy ETF EWI Update

Since Italy has been in the news lately by finally getting a coalition government formed, I thought it a good time to peek at the ETF covering the Italian equity market. As last time I updated this, it still looks like a decade long triangle either finished or nearly so.

iShares MSCI Italy ETF (EWI) update

Since there are elections coming up this weekend in Italy, thought it would be a good time to update the big picture charts for this ETF. I have interest in it as it has formed a classic triangle from the 2009 low and may have completed at the start of this year. I also think it can turn into a canary in the mine, a harbinger for the future.

Could Italian equities be the canary in the mine?

I find the iShares MSCI Italy ETF interesting for two reasons. One, so far, it is a textbook example of a triangle formation that has spanned nearly nine years. Two, if the triangle pattern holds and the Italian markets turn down, could that be a precursor to other European equity markets topping and even mark a turning point in the Euro?

I don’t know if the triangle pattern will hold or if it will be an early warning to other problems on the continent, but it does look like a trading opportunity is nearby.