investors intelligence
Generating first rate investment advice since 1947
Sample Research


ETF Global Opportunities

17 May 2018

Market Overview


Medium-term breadth for the equity market remains flat. The NYSE Bullish % is close to neutral and has not confirmed the recent rally by the equity market. Consequently, caution is still advised on equity funds until an internal improvement is shown. 

This afternoon we shall sell into the May market bounce, adding shorts in three equity funds.




This Week's Trades

  • Dow Industrials (DIA) - shorting
  • DJ Transportation Average (IYT) - shorting
  • Italy Index (EWI) - shorting

Note - Trades will be executed on today's close.






US Equity Indices


The Dow Industrials ETF has encountered resistance from its April peak. Momentum has corrected from oversold. The fund looks set for a return to its 200-day exponential moving average. 

The fund has underperformed since January against the S&P 500. We shall use recent strength to go short DIA on the close today.





US Sector Indices


The DJ Transportation Average fund this month rallied as far as peaks in March and April, resistance. Trading is likely to turn down from here to resume range trading, dropping back down to the 200-day exponential moving average. The 14-day RSI has room to fall.

The fund has underperformed since January. A short will be opened in IYT on the close today.




Other Developed Indices


The Italy Index fund is retreating from the $34 level, resistance from January. The P&F chart shows that ceiling dates all the way back to 2009. 

The relative ratio, versus the U.S. market, has deteriorated sharply this month. 

A short in EWI will be opened on the close today. 




Emerging Indices


The Brazil Index ETF is correcting on a price and relative basis this month. The move could deepen, down as far as rising trendline support at $35. Breaching that line would resume the longer down trend. 






The Euro Trust has accelerated to the downside the past week, reasserting the correction off the January high. With the 200-day exponential moving average broken, the pull-back will likely deepen. 

The relative ratio versus the equity market is trading around 52-week lows.






The Livestock fund remains in medium-term and long-term downtrends. The oversold bounce off the early April low looks complete as the price rolls over again. The 14-day RSI has room to allow an extension lower, to fresh all-time lows. 






The 7-10 year T-Bond fund is reasserting price and relative downtrends following the March correction into its falling 50-day exponential moving average. 

Further weakness expected. The P&F chart shows the next downside level to watch is trendline support at $97.



ETF Trading (Long/Short) Longs

Date Stock Code Type Open Price Current Price % P&L
30 Aug 2016 iShares DJ US Broker-Dealers Index Fund IAI Long 41.8277 68.38 +63.48%
16 Jan 2018 iShares MSCI Emerging EEM Long 49.32 47.18 -4.34%
26 Feb 2018 SPDR Sector Trst Utilities XLU Long 50.2 49.38 -1.63%

ETF Trading (Long/Short) Shorts

Date Stock Code Type Open Price Current Price % P&L
14 Feb 2017 Livestock COWTF Short 22.16 20.93 +5.55%
5 Feb 2018 ISHS Russell 2000 Index IWM Short 147.92 160.92 -8.79%
12 Feb 2018 iShares S&P Europe 350 Index IEV Short 46.7 47.96 -2.70%
20 Feb 2018 Agriculture ETF DBA Short 18.98 18.77 +1.11%
20 Feb 2018 Market Vectors Russia ETF RSX Short 23.09 21.68 +6.11%
5 Mar 2018 US Investment Grade Crp LQD Short 116.21 114.03 +1.88%
5 Mar 2018 iShares United Kingdom Index EWU Short 34.6 36.88 -6.59%
20 Mar 2018 iShares South Korea Index EWY Short 75.85 73.65 +2.90%
Model Portfolio Notes
Opening of positions – Positions are opened on the immediate closing price following the report.
Stops - Two flash crashes (2010, 2015) and occasional bad prices have forced us to drop strict stops. Positons will no longer be stopped out but we shall suggest a region as to where we MAY exit. 
Closures - With positions not being stopped out, we shall only exit positions via advice in the report. When we exit a trade, the next closing price is used. 
Allocation – Each trade is allocated 5% of the portfolio.
Recommend a friend! Tell your friends to mention your name when subscribing to Investors Intelligence, and get a months free access to a service of your choice! For more information, email

Also available online at Unauthorized forwarding, copying or reproduction of this report will be treated as a breach of copyright. To subscribe, visit the website or contact Investors Intelligence on +44 (0)20 7352 4001 or email

This report has been produced and compiled by Investors Intelligence, a division of Stockcube Research Limited which is authorised and regulated by the Financial Conduct Authority. It is distributed by Stockcube and is provided for information purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time Stockcube and any of its officers or employees may, to the extent permitted by law, have a position or otherwise be interested in any transactions, in any investments (including derivatives) directly or indirectly the subject of this report. Also Stockcube may from time to time perform other services (including acting as adviser or manager) for any company mentioned in this report. The value of securities can go down as well as up, and you may not get back the full amount you originally invested. Derivatives in particular are high risk, high reward investment instruments and an investor may lose some or all of his/her original investment. If you make an investment in securities that are denominated in a currency other than that of GB Pounds you are warned that changes in rates of foreign exchange may have an adverse effect on the value, price or income of the investment. The investments referred to herein may not be suitable investments for all persons accessing these pages. You should carefully consider whether all or any of these are suitable investments for you and if in any doubt consult an independent adviser. This report is prepared solely for the information of clients of Stockcube who are expected to make their own investment decisions without reliance on this report. Neither Stockcube nor any officer of Stockcube accepts any liability whatsoever for any direct and consequential loss arising from use of this report or its contents. This report may not be reproduced, distributed or published by any recipient for any purpose without the prior express consent of Stockcube.

Copyright 2017 by Stockcube Research Ltd.

Subscribe here:

  • Weekly update
  • Model Portfoilios
  • Online charts