The Market's Compass Emerging Markets Country ETF Study Excerpt

Week #415

The Market's Compass

Nov 28

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Welcome to this week’s Market’s Compass Emerging Market’s Country ETF Study, Week #415, that is being published in my Substack Blog. It will highlight the technical changes of the 22 EM Country ETFs that I track on a weekly basis and publish every third week. Paid subscribers will receive this week’s unabridged Emerging Market’s Country ETF Study sent to their registered e-mail. Free subscribers will recieve an excerpt of the full version. Past publications can be accessed by paid subscribers via The Market’s Compass Substack Blog. Next week we will be publishing the The Market’s Compass US Index and Sector ETF Study.

Last Week’s and 8 Week Trailing Technical Rankings of the Individual EM ETFs

The Excel spreadsheet below indicates the weekly change in the Technical Ranking (“TR”) of each individual ETF. The technical ranking or scoring system is an entirely quantitative approach that utilizes multiple technical considerations that include but are not limited to trend, momentum, measurements of accumulation/distribution and relative strength. If an individual ETFs technical condition improves the Technical Ranking TR rises and conversely if the technical condition continues to deteriorate the TR falls. The TR of each individual ETF ranges from 0 to 50. The primary take away from this spread sheet should be the trend of the individual TRs either the continued improvement or deterioration, as well as a change in direction. Secondarily, a very low ranking can signal an oversold condition and conversely a continued very high number can be viewed as an overbought condition, but with due warning, over sold conditions can continue at apace and overbought securities that have exhibited extraordinary momentum can easily become more overbought. A sustained trend change needs to unfold in the TR for it to be actionable. The TR of each individual ETF in each of the three geographic regions can also reveal comparative relative strength or weakness of the technical condition of the select ETFs in the same region.

The largest gain in the three EM Region Total Rankings since we last published on November 7th for the week ending November 4th was in the Asia-Pacific region which rose +15.5% to 221 from the 187.5 reading registered four weeks ago. That is followed by a slightly lesser gain of +10.9% in the EMEA Region Total Technical Ranking which rose to 215.5 from 192. The Lat-AM Region Total Technical Ranking lost ground over the same period dropping -13.80% to 134 from 152.5. The Asia-Pacific region and to a lesser degree the EMEA region helped the Total EM Ranking rise +6.75% to 570.5 from 532 despite the contraction in the Total Lat-Am Region Ranking since the last EM Country ETF Blog was published.

The Week Over Week Change in Individual Technical Rankings

Eleven ETFs registered improved Technical Rankings (TRs) week over week, 5 were unchanged and 6 had TRs that fell. The top two ETFs with TR improvement were the iShares MSCI Malaysia Index Fund ETF (EWM) which rose 7.5 to 35 from 27.5 and the Global X FTSE Greece ETF (GREK) which rose 6.5 to 41 from 34.5. Both ETFs have registered gradual improvements in their TRs since the week ending October 14th when the TR of the EWM was 5 and the TR of the GREK was 9.5. The average TR gain over the week was +1.27 “handles”. The best TR at the end of last week was registered by the iShares MSCI Turkey ETF (TUR) TR rising by 5 to 48 from 43. The TUR will continue to be highlighted in this week’s EM Country ETF Study.

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Data is courtesy of Bloomberg. I invite readers to contact me with any questions, comments, or suggestions at…

tbrackett@themarketscompass.com

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