EEM - The Perfect Hedge
Hello Traders,
As our followers know we remain bullish in the US equities however, there are definitely some signals that are pointing towards some more volatility.
We're not ready to short the US market just yet but as the dollar rises we want to also leave some downside hedge.
We'll be targeting EEM. Many emerging countries do not have enough dollar reserve to pay their debt. We believe that if there is any real downside to this market...the emerging market sector should get hit the hardest.
Also in terms of technicals, EEM has been creating a topping pattern and has not broken below the support line unlike other US equities. Some would argue that there is a head and shoulder pattern on the daily.
We're in this trade with a target of $42 strike by March 2021.
*NOT A FINANCIAL ADVICE, THIS IS JUST OUR PERSPECTIVE AND WE DO NOT RECOMMEND ANY TRADES WE PUBLISH ON OUR CHANNEL. YOU WILL LOSE MONEY.
As our followers know we remain bullish in the US equities however, there are definitely some signals that are pointing towards some more volatility.
We're not ready to short the US market just yet but as the dollar rises we want to also leave some downside hedge.
We'll be targeting EEM. Many emerging countries do not have enough dollar reserve to pay their debt. We believe that if there is any real downside to this market...the emerging market sector should get hit the hardest.
Also in terms of technicals, EEM has been creating a topping pattern and has not broken below the support line unlike other US equities. Some would argue that there is a head and shoulder pattern on the daily.
We're in this trade with a target of $42 strike by March 2021.
*NOT A FINANCIAL ADVICE, THIS IS JUST OUR PERSPECTIVE AND WE DO NOT RECOMMEND ANY TRADES WE PUBLISH ON OUR CHANNEL. YOU WILL LOSE MONEY.
Penafian
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