Today we are going to review 12 different equity markets around the world via their Country ETFs.
In line with my process, I will highlight outperformers and underperformers vs the U.S. (using the S&P 500 – NYSEARCA:SPY – as a proxy)
The charts are all set up the same with price on top, Relative Strength (RS) vs. the S&P 500 on the bottom panel. The charts are in no particular order.
If you want to add international exposure via ETFs, personally, I would always focus on those country ETFs that are outperforming the U.S. and (obviously) have bullish chart patterns. No sense waiting for the laggards to turn around.
One danger with some of these ETFs: Very top heavy or high percentage of ETF is one or two or three stocks.
ISHARES MSCI GERMANY ETF (NYSEARCA:EWG)
Germany’s ETF (EWG) is very bullish with a breakout to all time highs from an ascending triangle pattern. It’s Relative Strength (RS) vs. the “500” is turning bullish. A well diversified ETF.
ISHARES MSCI JAPAN ETF (NYSEARCA:EWJ)
Japan’s ETF (EWJ) saw a bullish breakout earlier this year from an ascending triangle. Note stabilization by RS over past couple of years, and then a breakout vs. the S&P 500. Well diversified ETF.
ISHARES MSCI NETHERLANDS ETF (NYSEARCA: EWN)
The Netherlands ETF (EWN) also saw a bullish breakout earlier this year from an ascending triangle, accompanied with bullish RS breakout vs. S&P 500. Four stocks make up 45% of ETF.
ISHARES MSCI AUSTRIA ETF (NYSEARCA:EWO)
Here we again see a bullish breakout from a symmetrical triangle earlier this year. Austria (EWO) also is seeing a recent RS breakout vs. S&P 500 confirms price break. Three stocks make up 46% of ETF.
ISHARES MSCI SPAIN ETF (NYSEARCA:EWP)
Spain (EWP) is clearly lagging other int’l ETF’s on a price basis with no breakout. May be tracing out ascending triangle. RS break vs. “500” failing. Five stocks make up 50% of ETF.
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