EEM (and XEM), Emerging markets

eem june 2011

Back in January it was anticipated that this ETF would not trade above roughly $50. So  far at least it has not. The pattern is fairly clear. An a-b-c in which the b is a very nice expanding triangle. The c wave travelled about 60% of the a –wave ( normal) and peaks at the appropriate time. Emerging markets are always the last investments to turn, if for no other reason than that no one really knows what is in them. The possibility of one more high is quite remote as it stands, so it should be high time to reduce one’s exposure.