Global Equities: Everybody Wins

The image below is a snapshot of 35 different country ETFs. For each ETF, we start off by showing its YTD performance along with where each one closed the prior trading day with respect to its 50-day moving average.From there, we also show each ETF’s Trend rating (up, down, or sideways), along with a ‘Timing’ score that takes into account each ETF’s trend and where it’s trading with respect to its trading range to determine whether current levels provide a statistically attractive time to take a long position. Finally, we also show where each ETF is trading with respect to its trading range (red or green circle) and where it was trading one week earlier (end of tail).

Looking at the current snapshot, the majority of country ETFs are not only above their 50-day moving averages, but they are also overbought. In fact, just nine ETFs are not overbought and only one – Turkey (TUR) – is below its 50-DMA. What’s really amazing about the recent performance of the country ETFs, though, is that all 35 ETFs listed below have traded higher over the last week. So it has not only been a good week for US equities, but stocks around the world have also been in rally mode. Leading the way to the upside, Sweden (EWD), Poland (EPOL), Turkey (TUR), and Austria (EWO) are all up over 4%, while Israel (EIS), China (GXC), Vietnam (VNM), and Malaysia (EWM) have lagged with gains of less than 1%.

So why are equities rallying on a global scale? There are a number of factors behind the move, ranging from some improved tone in global data, positive earnings, and the evergreen headline of optimism related to trade. One key thing to keep in mind with regards to the performance of the ETFs below, though, is that the returns are expressed in US dollar terms. Because the dollar has declined over 1% over the last week, it therefore automatically provides a boost to performance figures. The weak dollar hasn’t accounted for all of the strength in the individual country ETFs over the last week, but it has accounted for a large share of the gains. 

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