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Market Opinion: The market is becoming increasingly volatile as the VIX moves closer to 20. We see the Diamonds using 125 and 124 as reference levels of support. The government has yet to agree on the conditions of the debt ceiling. President Obama told reporters yesterday that if the bill does not get passed, he could not ensure that Social Security checks would be sent out on August 3rd, such uncertain words cannot bode well for investor confidence in the stock market.
Let’s take a look at some charts in the Far East for more stable and predictable investments outside of the United States. 
Buy Pick: EWM (iShare Malaysia)
The iShare Malaysia ETF has kept its uptrend intact throughout the entire market decline since the 1st of May. Credit is given to the Malaysia’s positive balance of trade (8.48), low jobless rate (3%), and strong annual growth rate (4.6%). Technically, EWM broke out to new highs in the beginning of July on strong volume. However, recent market declines have pushed EWM back to its break out level giving investors a good entry opportunity.
Entry: 15.00-15.10
Stop loss: 14.70
Price target: 15.50
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Buy Pick: EWS (iShare Singapore)
As with Malaysia, Singapore is another country that has a GDP under $200 billion annually. However, unlike Malaysia who has a quarterly GDP growth rate of -3.00%, Singapore has an outstanding 22% growth rate! Additionally, the jobless rate in Singapore is only 1.9%. Technically, the ishare Singapore is showing signs on a large inverse head-and-shoulder formation. We see EWS as a good investment going forward.
Entry: 13.30-13.60
Stop loss: 12.89
Price target: 14.50
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
