The market is punishing stock market momentum traders left and right. The ones that momo’d the trend late, which by definition is most of them. Biotech, Small Caps and across the pond, the Euro markets are getting dinged for jumping on a story and pushing it too far. Europe markets hit NFTRH‘s targets (ex. EURO STOXX 50 to 3800) and over threw them a bit before keeling over.
Here’s the Wisdom Tree Euro hedged European stock market ETF. For me, HEDJ is of interest again down the road a bit (we were on it before the momo’s in Q4 2014). First it must finish correcting and the Euro bounce must fail.
Not so coincidentally the unhedged EZU is okay. We had noted that the Euro hedged trade was over but that maybe Euro unhedged might be okay. Well, if the Euro tops out the two could reverse roles again.
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