Yesterday was a big day for China stocks and ETFs.
The PBOC cut its reserve requirement ratio to the lowest level in 4 years, as well as trimmed its main short-term interest rate.
The package included measures to lower overall mortgage costs and a de-stocking program that eased rules for second-home purchases.
It also gave a boost to commodities as China consumes a lot of them.
It also sent the US dollar lower while US equities were mainly green.
Yesterday’s action by China spurred reversals in some other country ETFs.
We have 2 others to look at besides FXI, the China ETF.
FXI chart is weekly. I did that for perspective after the huge rally.
The 200-week moving average in green shows resistance at 32.67 although the momentum right now is in favor of more upside.
January 2023 turned out a peak in FXI a bit higher at 33.38.
Nonetheless, we will hope for some consolidation after Yesterday.
Besides China, two other ETFs are looking to power high on the stimulus. Let's take a look at each of them below.
1. Vietnam ETF
VanEck Vietnam ETF (NYSE:VNM) as also declined this year.
However now, VNM has been consolidating between the 50- and 200-day moving averages. (Daily chart above).
Perhaps my favorite part of this chart is our Real Motion indicator showing a very substantial bullish divergence in momentum.
2. Mexico ETF
The daily chart of the iShares MSCI Mexico ETF (NYSE:EWW) is another one that has our attention.
This daily chart shows the price action clearing the 50-DMA Yesterday.
Plus, EWW now outperforms the SPY on the Leadership chart.
This could be an excellent time to look outside the US for investing.
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ETF Summary
(Pivotal means short-term bullish above that level and bearish below)
- S&P 500 (SPY) 565 pivotal support
- Russell 2000 (IWM) Range 215-225
- Dow (DIA) Not an island top but could still be a topping action
- Nasdaq (QQQ) 475 support 485 resistance
- Regional banks (KRE) 57 pivotal
- Semiconductors (SMH) 240 pivotal
- Transportation (IYT) 67.00 support 69 resistance
- Biotechnology (IBB) 145 support 150 resistance
- Retail (XRT) 73.50 support 77 resistance
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Still trading above the 200-WMA-healthy