The Market’s Compass Emerging Markets Country ETF Study

Welcome to this week’s  Market’s Compass Emerging Market’s Country ETF Study, Week #397, that is being published in our Substack Blog. It will highlight the technical changes of the 22 EM Country ETFs that we track on a weekly basis and publish every third week. Paid subscribers will continue to receive the Weekly ETF Studies sent directly to their registered email. Past publications also can be accessed by subscribers via The Market’s Compass Substack Blog. Next week we will be publishing the The Market’s Compass US Index and Sector ETF Study.

Last Week’s and 8 Week Trailing Technical Rankings of the Individual EM ETFs 

The Excel spreadsheet below indicates the weekly change in the Technical Ranking (“TR”) of each individual ETF. The technical ranking or scoring system is an entirely quantitative approach that utilizes multiple technical considerations that include but are not limited to trend, momentum, measurements of accumulation/distribution and relative strength. If an individual ETFs technical condition improves the Technical Ranking TR rises and conversely if the technical condition continues to deteriorate the TR falls. The TR of each individual ETF ranges from 0 to 50. The primary take away from this spread sheet should be the trend of the individual TRs either the continued improvement or deterioration, as well as a change in direction. Secondarily, a very low ranking can signal an oversold condition and conversely a continued very high number can be viewed as an overbought condition, but with due warning, over sold conditions can continue at apace and overbought securities that have exhibited extraordinary momentum can easily become more overbought. A sustained trend change needs to unfold in the TR for it to be actionable. The TR of each individual ETF in each of the three geographic regions can also reveal comparative relative strength or weakness of the technical condition of the select ETFs in the same region.

The largest gain of the three EM region Total Rankings since we last published on July 5th was the Asia-Pacific region. The Total Asia-Pacific Ranking rose +22.9% to 133 from 102.5 three weeks ago. That was followed by the Total EMEA Ranking which rose +22.6% to 133 from 102.5. The gain in the Total EMEA Ranking is noteworthy in that the VanEck Vectors Russia ETF (RSX) that not been trading since early March and its individual ranking continues to be static at 4.5 and has been a drag on the Total EMEA Total Ranking. The Lat-AM Total Ranking followed the other regional counterparts with a smaller gain of +8.7% rising to 68.5 from 62.5.

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