6 overseas ETFs I’m buying today

It’s a new month. Markets in Asia are
soaring today. Markets in Europe are positive. Futures are currently mixed.
Today I will buy a basket of ETFs. In this piece I will get into 6 ETFs. The
trade is till the end of the year and at that time the allocation will be
adjusted. Today it is prudent to be involved across the globe. It pays to get
involved in Europe and Asia if it is performance you are after. So I will get
into a basket of exchange traded funds and play those index funds for a swing.
The swing is on going as the blend is adjusted on the first day of business in
January, April, July and October.

iShares MSCI EAFE
(
EFA |
Quote |
Chart |
News |
PowerRating) 56.25

EFA as does all
the ETF’s trades on the AMEX.This fund is an index focused on equities from
across the globe. It is international in scope. The index is up 5.3% this year
and over 17% over the last 52 weeks. It is performing better then the SPX. It
is liquid so easy in and out. It trades above its 200-day line and is moving
toward its 50-day line after pulling back off its recent peak. It is a good
time to get involved and if it crosses its recent high at 58.57 made at the
end of September then it will be a good trade into the New Year. I am buying
it today. It is part of a basket of 6 indexes. Place a tight stop under its
200-day line. This is as are the others employed as a swing. Still, it is
necessary to maintain the discipline of stops. Place the stop under the
200-day line at 53.99

iShares MSCI Sweden
(
EWD |
Quote |
Chart |
News |
PowerRating) 21.32

This index is just
Sweden. It is up just 1.7% this year so clearly it is not extended. It trades
above its 10-day line but under its 50-day line as it came in during the month
of October. Place the stop at 20.49. It ought to hold that level. If the
year-end is positive then EWD will likely cross the near term high made on
8/11/05 at 22.63. The potential for a 5 to 8% rise over the next two months is
doable. The instrument is not very liquid and that is a disadvantage. In spite
of its lack of liquidity it pays to get involved at this time. Each instrument
alone is not all that compelling. As a basket of equally weighted instruments
the result ought to provide better then average performance.

iShares MSCI Germany
(
EWG |
Quote |
Chart |
News |
PowerRating) 18.90

This instrument is
actually underperforming the German market. Is that a reason to avoid it?
Perhaps it is time to get involved in it. It trades well and has decent
liquidity. Stops keep losses at a minimum. This instrument currently trades
above its 200-day line but recently fell below its 50-day line after peaking
at 20.07 on 9/9/2005. It rose above its 10-day line so it is timely. Place the
stop under its 200-day line at 18.25.

iShares MSCI Hong Kong
(
EWH |
Quote |
Chart |
News |
PowerRating) 18.90

This is not about
making money today. It is about making money over a period of days. It is good
for a swing or more. So with this strategy it is a return over 90 days. At
year end EWH will be examined along with the others in the basket and will
either move off to the side or stay in play for another 3 months. Stop losses
are the only trigger that will cause action. If the instrument is failing then
there is a reason to cut and run. The 200-day line is trading at 18.39. The
stop ought to be placed at 18.25.

iShares MSCI Japan
(
EWJ |
Quote |
Chart |
News |
PowerRating) 12.11

EWJ is the best
performing instrument of the blend thus far this year gaining 10.8% thus far
this year. Decent performance. Not quite as good as the NIKKEI 225 but decent
enough. It is up 22.4% over the last 52 weeks. I have been involved in this
instrument for the last 3 months and in that time frame it is up near 20%.
That is solid. That is what is welcomed. That is the type of performance that
rewards those willing to be at risk. Japan has been beaten up for over a
generation and secular bear markets just don’t last that long. Japan is
emerging as the number one major market in the world. That is the current
reality given the way the tape expresses itself. I already own this and the
others will be added to the blend today.

IShares MSCI FTSE/Xinhua
(
FXI |
Quote |
Chart |
News |
PowerRating) 57.61

How can you ignore
China at this time? Yes India is not present in this current basket. It may be
in January. It depends on what is so at that time. In the mean time FXI is a
good addition to the blend. This completes the basket. Place the stop at
56.25. It is really about bottom fishing here. It could be timely as it sold
off significantly in October. This instrument has been mauled this month as
shares trade well off the peak at 65.90 made on 8/15/05. By itself it stinks
but it is part of a package.

Here is a packaged product created just for you. Take it with you to the bank
and get involved. It is one way to participate in the global markets. It is
all about performance and total return relative to the risk taken. Buy an
equal dollar amount of each. If you place 100k into the basket then have an
equal amount in each position.

The markets failed to close above key inflection points yesterday and that
failure could prompt profit taking and selling pressure as the day gets going.
So pay attention and stay nimble.

Jack S. Rothstein

Rothstein Investment Advisory Services, Inc.

3600 Chain
Bridge Road, Suite 200

www.jrmoney.com
— www.wealthcast.com

Jack Rothstein is the
President of Rothstein Investment Advisory Services, Inc. and is a 20-year
veteran stock trader and a money manager.