EEM – big BUY pattern

note, we finished a very nice BUY pattern on the EEM yesterday. it was nice in both PRICE and TIME.

it ‘held’ in/around 38’s but is plowing into a pretty big daily gap. additionally, the THRUST into this level was pretty significant. any further weakness below the 38’s is significant for EEM.

also, note .841 level is based on the equal octave scale of music. 1/.841 = 1.1892 or D#.

watch this one closely …

Copper and the Emerging Markets (EEM ETF)

Copper is important … it’s still a major player w/ regard to the global economy and is something that should be watched.  We also think Copper made a very important wave 5 top … here’s the chart as the top was getting made (I want to provide “real time “charts” so there is no “could of, would of, should of”).  It certainly counts a 5 wave move UP being complete.

TOP in COPPER approaching in 12/2010
TOP in COPPER approaching in 12/2010

WHY IS THIS SO IMPORTANT … well, if we do, in fact, have this count right then the corrective move in COPPER HAS A LOT MORE TO GO. Here’s the updated chart and note the “neckline” that most everyone can see.  Bottom line is this neckline is a big deal and, particularly to the EEM ETF. (Emerging Markets)

Copper as of Feb 2014
Copper as of Feb 2014

here is the EEM ETF (daily) and NOTE HOW IMPORTANT THE 37-38 LEVEL IS FOR THIS ETF.  It’s completed a pattern and we had some good buying occurring at the key level but IT NEEDS TO HOLD.

EEM NEEDS TO HOLD CURRENT LEVELS
EEM NEEDS TO HOLD CURRENT LEVELS

 

EEM weekly potential head and shoulders
EEM weekly potential head and shoulders

now, why the diatribe about Copper above?  Well, this next chart is Copper overlaid on top of EEM.  Note the synchronicity … pretty well lined up.

EEM and COPPER overlaid
EEM and COPPER overlaid

PUNCH LINE:

  • IF COPPER has 5 wave top THEN it has more correcting and downside.  Potentially substantial …
  • IF COPPER and EEM synchronicity to remain THEN EEM pattern that is noted on the DAILY EEM chart will, ultimately, fail.
  • IF COPPER and EEM break necklines THEN substantial selling coming in the future for not only COPPER but also the Emerging Markets.
  • THERFORE: don’t be LONG EEM.

Make it a great weekend …. B