Emrg Mkts Index EEM Daily - Bullish Trendline Break Vs SPY

For the start of 2014, the EEM decline 11% in 22 trading days (34 calendar). Now the EEM is coming back to unchanged here. I could see it take some time here to regroup, but I see it outperforming the S&P500 SPY over the next 3-4 months to the tune of 10%-15%.

There has been a 40% relative UNDERPERFORMANCE for EEM since the peak at the end of 2012. That is a tremendous performance lag.

Investors appear to be liquidating their US positions and rotating into Emerging Markets positions and I agree with the shift in trend.

Risk 4% - versus - Reward of 10%-15%. Time frame 1 to 3 months.

Tim 2:21PM EST, Friday, March 28, 2014

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