• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / ETFs / Commentary / 3 European Country Fund ETFs for Short Term Traders

3 European Country Fund ETFs for Short Term Traders

March 28, 2012 by TradingMarkets Editors

If you miss the days of worrying about Europe …

Country funds from The Continent aren’t the only ones retreating to short-term oversold territory. But with so much focus on Asia, the recent pullbacks in funds representing national stock markets in the United Kingdom, France and Europe in general have gone overlooked.

This could be a mistake for traders and active investors looking to buy weakness and sell strength in bull markets. Here are a trio of exchange-traded funds that high probability traders will be watching as they move lower above the 200-day moving average.

Two consecutive lower closes have taken the iShares MSCI United Kingdom Index Fund ETF (NYSE: EWU) from short-term overbought territory to short-term oversold above the 200-day moving average. Trading at new, six-month highs at the beginning of the month, EWU is pulling back to significant, short-term lows for the second time since the fund climbed back into bull market territory in late January.

That previous pullback had EWU closing lower for three days in a row, twice in technically oversold territory, before buyers swooped in, bidding the stock higher by more than 4% over the next five days.

Heading into trading on Thursday, EWU has a positive, short-term edge of just over one percent. The ETF also earned a one-point ratings upgrade to a neutral, 6 out of 10 midway through the session.

Comparable edges and short-term ratings are present in the iShares MSCI France Index Fund ETF (NYSE: EWQ), as well. With a positive edge of more than three-quarters of a percent in the short-term and neutral ratings, EWQ has pulled back by just under one percent in Wednesday’s trading to finish at new, two-week lows. Note that EWQ has only been trading above its 200-day moving average since the beginning of March.

Traders wanting a broader, more diverse exposure to European equities may want to consider the pullback in the Vanguard European ETF (NYSE: VGK).

Like EWQ, VGK has traded in bull market territory on a consistent basis only since the first days of March. But in that time, VGK has already tested the willingness of buyers to take advantage of short-term oversold conditions. A three-day sell-off in the ETF shortly after mid-month, took VGK into oversold territory for two days in a row before the fund reversed course, bounding higher by more than two and a half percent in two days.

VGK sold off by 1% in Wednesday’s trading, and has a positive edge of just under that amount. VGK shares neutral ratings with both EWQ and EWU.

Click here to learn more about the Connors Research Trading Strategy Series. Stock market research for short-term traders and active investors.

David Penn is Editor in Chief of TradingMarkets.com

Filed Under: Commentary, Recent Tagged With: ETF Trading, Hot List

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

New Book From Larry Connors and Chris Cain, CMT – "The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk"

We’re excited to announce the release of a new investment book written by Larry Connors and Chris Cain, CMT. The book, “The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk “ combines… Hedge fund legend Ray Dalio’s brilliant insight into combining uncorrelated strategies… With new, minimally correlated, quantified, systematic strategies to trade… [Read More]

Buy The Alpha Formula Now

Connors Research Traders Journal (Volume 57): 7 Real-World Reasons Why Short Strategies Should Be Included In Your Portfolio

In our new book, The Alpha Formula – High Powered Strategies to Beat the Market with Less Risk, we show the benefits of including short-strategies in your portfolio. As a reminder, building portfolios should be based on First Principles – otherwise known as truths. These truths are: Markets Go Up Market Go Down Markets Go… [Read More]

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2023 · News Pro Theme on Genesis Framework · WordPress · Log in