Nasdaq Dorsey Wright

With no changes to any of the iShares models this week, we look at the iShares MSCI Eurozone ETF (EZU).

There are no changes to any of the iShares models this week. While US equities and commodities rank first and second in the DALI asset class rankings, we continue to see signs of strength in international equities. International groups currently make up five of the top 10 groups in the Asset Class Group Score system with Europe ranking second out of all 134 groups.

Investors looking to take advantage of this strength should consider the iShares MSCI Eurozone ETF (EZU). EZU currently has a near-perfect 5.81 fund score, which is 1.62 points better than the average for all non-US equity funds, and a positive 3.34 score direction. On its default chart, EZU has given two consecutive buy signals and reached a new multi-year high earlier this month. EZU currently sits in heavily overbought territory with a weekly overbought/oversold (OBOS) reading of 77%, so those interested in adding exposure may be best served to do so on a pullback. EZU has most recently found support at $47.50, where its bullish support line also currently sits. Year-to-date (through 5/21) EZU has gained 24.79% on a price return basis, while the iShares MSCI EAFE ETF (EFA) is up 16.35%. EZU also carries a 2.45% yield.

Back to report

DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. BlackRock sponsors the Dorsey Wright iShares ETF Models. However, analysis, models and recommendations are created and provided solely by Dorsey, Wright & Associates (Dorsey Wright). Neither BlackRock, BlackRock Advisors and its affiliates, nor SEI Investments Distribution Co. or its affiliates (SEI) are affiliated with Dorsey Wright. Neither BlackRock nor SEI provides investment advice or recommendations regarding any security, fund or market. Analysis, models and recommendations should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including iShares. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. No individual risk management tools are used in maintaining this model. This model may not be suitable for all investors. As the investment professional making the final decision with respect to allocations, remember to adhere to NASD Rules 2090 and 2111 (formerly NYSE Rule 405, Know Your Customer). The percentage of the portfolio devoted to any iShares strategy, as well as final individual weightings are at the sole discretion of the financial advisor and not Dorsey, Wright & Associates, BlackRock or SEI Investments Distribution Co. or its affiliates (SEI) . If you are not familiar with the Point & Figure methodology, we suggest you read "Point & Figure Charting, 4th Edition" by Thomas J. Dorsey or visit the PnF University at www.dorseywright.com. If you are not familiar with the iShares products, or Exchange Traded Funds (ETFs), we suggest you visit www.ishares.com for more information.