There are no changes to any of the iShares models this week. As discussed in Tuesday’s report, We have recently seen strength in emerging markets as the iShares Emerging Markets ETF EEM has outperformed the S&P 500 SPX over the last month and the average score of the emerging markets group has moved above 4.0. From a geographical perspective, Asian pacific countries have been one of the major drivers of the recent strength of emerging markets.

In trading earlier this month, the iShares MSCI South Korea ETF EWY gave a fifth consecutive buy signal when it broke a triple top at $68, marking a new 52-week high for the fund and a recent flip to positive weekly momentum is a positive sign of its potential for additional upside. EWY has a near-perfect 5.79 fund score, 2.46 points better than the average for all non-US equity funds, and a positive 3.66 fund score direction. Year-to-date (through 10/28) EWY has gained 6.18% on a price return basis. The fund also carries a 1.98% yield.

Despite sitting at a 52-week high, EWY remains well within actionable territory with a weekly overbought/oversold reading of 10%, so those interested in adding exposure may do so here. EWY has most recently found support at $63, with additional support found at $62.

This section of the report categorizes select iShares Fixed Income and Currency ETPs by their respective fund groups. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time with an "average level" to give us a general picture of whether the iShare ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong market ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. 

Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell. The Distribution Curve below displays those ETFs with positive RS in uppercase letters and those ETFs with poor RS versus the market in lowercase letters. As well, those ETFs that are on a Point & Figure Buy signal appear in Green letters, while those on Sell signals can appear in Red letters. Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

Average Level

-47.27

			ewz
			ewd
			wood
			SLV
			IVV
	ewk		IYJ
	ewq		epp	ign
	ewu		IAI	ilf
	ewl	kxi	IYY	ITB		ihf
	eufn	thd	ews	dvy		indy
	ige	iyz	iyt	gsg	ewj	IHI
	tur	ewc	igf	IAU	eza	eem
epol	ewp	exi	ewm	epu	eems	iat
ewg	emif	IXJ	ewh	ech	ixp	eww
ixc	ieo	mxi	IXN	iyk	eido	jxi
erus	ITA	icf	IYC	iak	IBB	ewy
ewi	ewo	iyg	IHE	RXI	IJH	ewt	fxi
iev	iez	ixg	ewn	eis	SOXX	bkf	idu
ezu	efa	iym	ewa	IJR	IGV	enzl	icln
<--100	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

This section of the report categorizes select iShares ETFs by their respective broad group. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

Weekly Updates: No changes.