Country ETFs Overbought

From our daily ETF Trends report at Bespoke Premium, below we highlight various country ETFs and their current trading levels. An ETF becomes overbought when it trades more than one standard deviation above its 50-day moving average. The % overbought number is how far the ETF is currently above this initial overbought level.

This is the first time in quite awhile that all country ETFs have been overbought at the same time, and it's a sign that markets around the world are extended from their normal trading ranges. The Taiwan ETF is the most overbought at 13.32%, followed by Italy (8.34%), India (7.92%), Brazil (7.14%), Sweden (7.08%), and South Korea (7.08%). Japan is the least overbought at 1.4%.

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Comments

[Steve in TN:]

Thanks for your important research guys.
I think I'll wait a while before I buy any more emerging market ETFs.

Apr 30 03:36 PM

[Alan Young:]

I agree--it's great to get this timely observation, presented with simplicity and precision. Most useful!

Apr 30 10:51 PM

[JGL:]

Does this mean you expect a correction and that this would then become a buying opportunity?

May 01 08:53 AM

[Twitcher:]

So? Acta or Verba?

May 01 10:31 AM

[guapo:]

The assumption of overbuying requires that the buyers go back to the dollar but I do not necessary believe that the buyers would back to the dollar. for instance, me.
Perhaps we are observing that the market do not expect the dollar to increase in valuation.
Perhaps this tendency shows that dolar is falling down and the buyers prefer other currency instead.
Like naufrages in the sea , people look for anything that float , whatever, in this chaotic market,

As a conclusion, I would say "BE CAUTIOUS". we are in unchattered waters.

May 01 10:59 AM