Find an Options Broker | Log In | Register

3 Buy Signals for VWO

by Sam Collins 10/06/09

Vanguard Emerging Markets ETF (VWO) -- On Aug. 21, I said, "This exchange-traded fund (ETF), which seeks to track the performance of the MSCI Emerging Markets Index, executed a triple-top breakout in early April, following a triple-bottom -- both very bullish signals."

VWO Chart

Chart Legend

"It then established a bull channel, after a gold cross, and recently triggered the second Collins-Bollinger Reversal (CBR) buy signal. Buy now with a target of $45 to $50."

Then, on Sept. 8, at $37.04, I said, "Note the new stochastic buy signal, as well as new upside buying. I'll stick with my original target of $45 to $50."

This is still one of my favorite ETF charts. Note the stability of the advance in the bull channel and the three CBR buy signals.

My target is still $45 to $50.

Go after money doublers with every trade you make! Download your FREE copy of The Options Trader's Guide to Technical Analysis today.

More By This Expert

Should You be Worried the Market is Overbought?

I've been noting that our internal indicators are overbought, but none of them actually issued a sell signal until yesterday.

Emerging Markets Fund Looks Tired

The iShares MSCI Emerging Markets Index Fund (EEM) has been a great performer but, like the broad market, is showing sign of fatigue.

Volume Declining to Lowest Level of the Year

Major investors are reluctant to put more cash to work until they are convinced that the economy is moving forward enough to warrant new investments.

Bulk Up Your Portfolio With SB

With shipping rates going up, dry bulk carrier Safe Bulkers Inc. (SB) has broken from a bullish formation.

Is the Market Tiring?

Most technicians would consider a divergence in the Dow averages to be a potentially important indication that the market is tiring. But is this a serious problem, yet?