Global ETFs traded down Friday on profit taking and
weaker-than-expected export data from China, raising concerns
that its economic growth is decelerating.
The world's second-largest economy reported export growth
slipped to 1% in July from 11.3% in June, owing to weak European
demand. Economists expected a 7% gain in July. Gross domestic
product grew 7.6% in the second quarter, marking the slowest rate
since 2009, and far below the government's 10% growth target.
IShares FTSE/Xinhua China 25
), tracking 25 blue-chip companies, fell 0.43% to 35.14. It
slipped from a three-month high reached the prior
session.Claymore/AlphaShares China Small Cap ETF (
), slipped 0.05%.
"FXI is finally breaking out of a complicated inverse
head-and-shoulders formation, and it appears to us that the
intermediate-term trend is very close to turning back to
bullish," Mark Arbeter, chief technical strategist at S&P
Capital IQ, wrote in his weekly technical report. "However, like
many global indices, there is a lot of overhead supply sitting on
top of current prices. Relative performance vs. the S&P 500
remains in a long-term downtrend, as the RS (relative strength)
line has been declining since July 2009. The RS line recently hit
its weakest level since October 2008."
If FXI can break above 36 to complete the inverse
head-and-shoulders pattern, it could rise to its February high at
40, says Arbeter. It has regained its 50-day moving average but
the downward-sloping 200-day moving average poses overhead price
IShares MSCI EAFE Index (
), tracking developed foreign markets, let up 0.21%. It recovered
its 200-day moving for the first time in three months earlier
this week, signaling a bullish trend change.
IShares MSCI Emerging Markets Index (
) edged up 0.04%. It has stayed out of the red for six days
straight. It's recovered its 200-day moving average for the first
time in three months also and its chart also looks bullish.
Turkey Flaps Higher
Turkish stocks outperformed foreign markets Friday as they
have all year.IShares MSCI Turkey Investable Market Index (
) jumped 1% to 55.37. TUR flew an eye-popping 36% year to date
vs. 7.1% for the MSCI EAFE index and has outpaced all foreign
markets this year except for Egypt.
Turkey boasts strong domestic demand and is centrally located
between Europe, the Middle East and Africa. But it has a large
current account deficit because of its need to import energy.
that Turkey's massive deficit shrank by almost a third this
year, thanks to lower oil prices and a rise in exports. Foreign
fund managers ate up nearly $8 billion in Turkish bonds this
Turkey's GDP is expected to expand 2.3% this year and 3.2% in
2013, according to the International Monetary Fund.
TUR broke out of a cup-with-handle pattern in late July and is
now 4% over a 53.29 buy point. It has a strong IBD Relative
Strength Rating of 78. That means its price action is outpacing
78% of the issues on the market. Its Accumulation-Distribution
Rating of C- indicates institutional buying and selling is nearly
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