Below is our trading range screen of the 30 largest country ETFs traded on US exchanges. For each country, the dot represents where it's currently trading within its range, while the tail end represents where it was trading one week ago. The black vertical "N" line represents each ETF's 50-day moving average. Moves into the red zone are considered overbought, while moves into the green zone are considered oversold.
As shown, all but 3 of the 30 country ETFs highlighted are in oversold territory -- most of them deeply oversold. Just one country remains above its 50-day (Vietnam) after Thailand (THD) broke below its 50-day today. As of the close today, two-thirds are down for the year.
Are we due for a bounce soon? Markets can stay oversold for long periods of time, just as they can stay overbought. Before entering an oversold name, we like to see it at least make a short-term bottom and turn higher, similar to countries like Australia (EWA), Taiwan (EWT) and Malaysia (EWM) have done over the last week. Countries where the dot is to the left of the tail are ones to avoid, as it's like catching the proverbial "falling knife."
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