I Hear Sweden is Nice in the Summer

The US economy is heading back to the dumper. The US Dollar Index can’t feel much pain anymore as it has received so many lashings behind the wood shed. Yet it looks to continue lower. The Stock Market did not take too kindly to the Bernanke forgetting to mention that QE3 was coming. And US Treasury yields are running negative in real terms. If you had a job that paid you money (those are scarce too) where are you supposed to put it? Not in the US. But Japan is in a nuclear meltdown, China is slowing and the Euro is about to take down all of its participants. Well it is Summer and I hear that Sweden is nice this time of year. It is not too hot, they get about 18 hours of sunlight this time of year, and they make a mean meatball How about putting your money there on an extended holiday? Here are a couple of options.

Currency Shares Swedish Krona Trust, ticker: $FXS

Currency Shares Swedish Krona Trust, FXS, has been in a rising trend this year with a couple of pullbacks to the 50 and 100 day Simple Moving Averages (SMA). Over the last two weeks it found support at both SMA’s and is testing the gap area at 162.50 in a consolidating ascending triangle. If it can get over that level then it has resistance at 165 and 168 before it makes new highs. The Relative Strength Index (RSI) is rising and the Moving Average Convergence Divergence (MACD) indicator has also been rising and crossed positive last week. Both are positive for more upside. But also notice that FXS has been regularly making new highs at three month intervals. This wold put the next peak at the beginning of August, perfect timing to get your money back from Sweden for the school year.

Sweden iShares, ticker: $EWD

The Sweden iShares, EWD, has been in a rising channel for the past year as well. It is now holding support at the rising 50 day SMA after rising from a higher low with the Bollinger bands tightening. It has resistance above at 35.10 and through that at 36 before it can try new highs. The RSI and MACD are basically flat so they do not offer much insight, but notice that EWD also has put in regular tops at higher highs on a 3 month basis.

Just whatever you do do not put your money into Nokia, (ticker: $NOK). I know the language barrier will make it confusing but this is a Finnish company not Swedish as can be seen in the chart.

Nokia, ticker: $NOK

Despite looking like it is basing after a fall, with an RSI that is oversold, it has a lot of work to do to show that it is a healthy place to put money. The MACD is still very negative. If you notice that the price gets over 6.80 though then it might be worth a dabble and is stronger over 7.16 to move to resistance at the Fibonacci level at 7.70 and then the gap fill at 8.01. Until it holds over 6.80 it is nothing more than a bear flag. Enjoy your time off!

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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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.

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