Sticking it to the British, Again!

• Posted by Greg Harmon
• on July 3rd, 2013

Two hundred thirty seven years ago we declared our Independence from British rule. This was a very brave act for a bunch of farmers. To celebrate you can re-enact sticking it to the British today, but in a much safer way. Short their market. The chart below of the United Kingdom iShares, $EWU, tells the story. The price has been floundering in a dead cat move higher over the last 2 weeks. With a Shooting Star Monday, confirmed lower Tuesday, it seems to be resolving

lower. The 200 day Simple Moving Average (SMA) is now above the price and the Relative Strength Index (RSI) is turning back lower, never having left bearish territory. The moving Average Convergence Divergence indicator (MACD) is diverging on the daily chart, so there is still a bit of doubt in the turn back lower. But you do not need to see the white of their eyes to hit the short button. Just use a stop a few cents above the gap at 18 as a stop.

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