There are no changes to be made within either of the Dorsey Wright Guggenheim Models this week, as each of the current holdings continue to maintain positive relative strength within their respective universes. Today we are highlighting the Guggenheim China All-Cap ETF (YAO).
There are no changes to be made within either of the Dorsey Wright Guggenheim Models this week, as each of the current holdings continue to maintain positive relative strength within their respective universes.
We have continued to see strength come from International Equities, which currently ranks #2 in DALI and is the most improved asset class year-to-date, up 65 buy signals. Among those countries that are driving this improvement is China, and we can see this on the chart of the Guggenheim China All-Cap ETF YAO. With yesterday’s market action, YAO rallied to $28.50, breaking through the bearish resistance line, flipping the overall trend back to positive for the first time since July 2015. This level also marks a new 52-week high for the fund. YAO has a strong fund score of 4.71 with an impressive score direction of 4.00, speaking to its recent improvement over the past six months. YAO is outscoring the average Non-US Equity fund (3.82), the average All China fund (4.07), as well as the average All Global & International fund (3.69). Weekly momentum just flipped positive, suggesting the potential for further upside from here. Additionally, YAO has a price target of $39, offering a reward to risk ratio north of 2 (assuming a stop of $23.50). Overall, the weight of the evidence is positive here. Okay to initiate new positions here if looking to garner or increase exposure to China. The first sign of trouble from here comes with a move to $23.50, a double bottom sell signal.
The performance numbers above a price return is not inclusive of dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss.
