Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Nov 19, 2019
Latin America ETFs look poised for rallies

Latin America ETFs look poised for rallies

Latin American markets really tumbled in the first half of November and that caused the iShares MSCI Brazil Capped ETF (NYSE: EWZ) and the iShares Latin America 40 ETF (NYSE: ILF) to drop over 5% from November 4 through November 14. Both funds jumped sharply on the 15th and look poised to rally based on a number of different indicators.

First, let's look at the EWZ. We see that the fund has been trending higher since the end of August and a trend channel has formed during this time. The ETF just bounced off of the lower rail of the channel this past week before the bounce on Friday.

The daily stochastic readings are in overbought territory, but they performed a bullish crossover on Friday. The jump also caused the stock to move back above its 50-day moving average, which indicates a change from a downtrend to an uptrend. Accoriding to Tickeron's statistics, in 34 of 39 similar backtested cases where EWZ's price crossed above its 50-day moving average, its price rose further within the subsequent month. The odds of a continued uptrend are 87%.

In addition to the move back above the 50-day, the 50-day just crossed back above its 200-day moving average earlier in November. This indicates a buy signal, due to the trend repositioning higher. In 3 of 3 cases where EWZ's 50-day moving average crossed above its 200-day moving average, its price rose further within the subsequent month. The odds of a continued uptrend are 90%.

Yet another indicator that is pointing to a rally is the Bollinger Bands. The fund fell below the lower Bollinger Band on November 13 and a price increase is expected as the ticker heads toward the middle band. In 40 of 46 cases where EWZ's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued uptrend are 87%.

Turning our attention to the ILF, we see similar patterns and statistics. While the ILF includes stocks outside of Brazil, the fund is heavily populated with Brazilian companies. Like we saw with the EWZ, the ILF has been trending higher since late August and a trend channel has formed. The fund just bounced off the lower rail of the channel and the daily stochastic readings just made a bullish crossover.

The ILF also moved back above its 50-day moving average on November 15 and according to Tickeron's stats, in 42 of 46 cases where ILF's price crossed above its 50-day moving average, its price rose further within the subsequent month. The odds of a continued uptrend are 90%.

The ILF also dropped below its lower Bollinger Band on November 13 and the stats for this fund show increases in the stock price in 36 of 40 cases. The odds of a continued uptrend are 90%.

Obviously there is some overlap between these two funds and they will move in tandem with one another a great deal of time, but they can and will de-couple from time to time. The EWZ has performed a little better over the past year than the ILF, but because the ILF is a little more diversified beyond Brazilian stocks, it tends to be a little less volatile at times.

Related Tickers: EWZ
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.