“Don’t Cry For Me” – Argentina
- Posted by Greg Harmon
- on July 31st, 2014
Bet you thought that was gonna be Madonna. So, Argentina defaulted on their debt yesterday. So what! They have defaulted 7 times before! Seven! Unless you own their debt this should not be a big deal. Maybe even if you own it. Financial crisis and default is in their blood. Hell the big crisis from the Peron era led to a musical that has been around for 40 years now. Default is their middle name. But the Argentinians are not crying about it. They just missed winning the World Cup and their stock market is soaring.
The chart above shows the trend higher in the FTSE Argentina 20 ETF, $ARGT, since the pullback in February. The bearish Butterfly harmonic completed and it retraced, but is heading back higher again. The MACD is about to cross up, a bullish indication. And the RSI has turned higher. This has also created what is known as a Positive RSI Reversal, where a lower low in the RSI is accompanied by a higher low in the ETF Price. It gives a target higher to 26. And the two legs higher at the 138.2% Fibonacci ratio, suggest a possible 3 Drives pattern that targets 26.25 as well.
I know a lot of technical jargon. But the bottom line is that the Argentina stock market is looking higher. So listen to what it is saying and don’t cry for it.
Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.
____________________________________________________________________________________________________
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 2014 Expiry and sign up here
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
blog comments powered by Disqus-
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)