Showing relative weakness for several months and a couple of bearish chart patterns, the MSCI Emerging Markets ETF (EEM) is a good short idea. Any bounce toward the $40 area most likely will be met with supply. My initial target is set to around $38 – $37 with a stop around $41 for a Reward / Risk of 3:1. When it triggers my entry point, I will be short via the EUM (The inverse Emerging Markets ETF)
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- EEM Weekly Chart
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- EEM Daily Chart
