EWJ...Sell Short Here
The Japanese iShares EWJ has been very weak relative to the other world markets. Notice how EWJ has been making slighty higher highs since August (green line) while the ratio line has been making lower highs(The ratio line compares EWJ to the S&P).
Also notice how accurrate the 2 month cycle highs have been.There is a high due about now which came a few days early but I still consider it within the time window for a cyclical high. Each cyclical high produced a significant down move worth trading. The stochastics just crossed confirming a sell signal.. Given all the evidence on the above chart, I have to be bearish on EWJ and look for it to test the 13.00 area.
1 comment:
Kevin, great blog, I love the charting and ideas to do more research on. EWJ had a nice dop today. How would you like to link exchange? let me know
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