Back in Emerging Markets

We had some shorter term technical indicators turn positive this week so we started looking at putting a little money back to work.  Since our longer term indicators are still negative, we want to focus on those areas that have held up well and are showing strength.  This is not the time where you can simply throw a dart at a list of stocks and expect it to go up.  You need to be careful, know your stop loss point and make sure to make appropriate bet sizes.

That being said, the emerging markets space is looking positive and a place we added money to late last week.  In this space there are definitely places you want to be and places where you would better off avoiding.

Consider:  iShares MSCI Thailand Investable Index (THD) - THD is trading well above its 50 and 200 day moving average, has reached a new high for the year and is showing strong relative performance versus most other markets.  ETFs that are making new highs for the year while most others are not would be the areas that you want to consider here and THD meets all our criteria of a strong performer.

Avoid:  Market Vectors Egypt Index (EGPT) - EGPT on the other hand has continued to show weakness and rather than new highs, it is putting in lower lows.  It is trading below its 50 day moving average, is clearly in a downtrend and is very weak compared to its peers.  EGPT has very little going for it at this point and would be something to avoid here until it improves.