Here is a portion of my Weekly Strategy Session from last October 21, 2012. I put members on alert for a breakout in the developed economies, even as the U.S. markets were correcting and many were calling for an imminent bear breakdown. Currently, EFA is trading at $58.04 and has seen a nice breakout and hold above $56.
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In Addition to Emerging Markets, Namely China, Seeing Strong Inflows of Late, the Developed Economies are Showing Promising Signs of Attracting Rotations as Well.
…consider the EFA ETF. This particular ETF concentrates on multinational firms with heavy exposure to the developed economies in Europe, Japan, Australia, and developed parts of Asia.
There is not much attention being focused here by market players, but as you can see on the weekly timeframe, below, the $56 level represents a major breakout point. After several attempts at breaking through the $56 level over the past year, this time around the EFAis tightly flagging on the weekly chart just under that major level, as opposed to being violently rejected away from it. The more a major level is tested without violent rejection, the more likely it is to eventually be breached. With not many traders positioned for developed world economies to see a major, year-long breakout, this ETF certainly merits your attention going forward as another area to benefit from capital rotation.Twitter