Monday, September 16, 2013

Long term investment entry for China small cap ETF: HAO

The market had turned into bullish on last Monday 9-9, after Nasdaq broke into new yearly highs. After that, the market behaved in healthy way last week.

Looking at the long term trends, I felt we are already in a bullish long term uptrend as we are facing the initial interest rate hikes environment. We did not have a market correction since this summer.  So a correction would be nice to provide attractive entry for SDY, the dividend equivalent ETF for SPY.

Among all uptrending ETF's, HAO is the one that I like right now, since it's not too extended yet. This China small cap ETF is showing an uptrending 200 day moving average with the current price slightly above the 200 & 50 DMA. Other positive entry signs are listed in the doc, along with the stock chart. My stop point will be the point where 50 DMA crossing down 200 DMA and the price falls down to $21.15.

Due to the changing economic environment, I think the interest rate is going up in the long run. Thus my portfolio of long term investment will change. For example, the real estate ETF IYR may not perform well in a rising interest rate. I'll invest more on the technology sector for this market.

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