The rally in equities over the last several days hasn’t just been confined to the US. As shown in the snapshot below of regional global ETFs from our Trend Analyzer, with the exception of the Latin America 40 ETF (ILF), every ETF has had a positive return over the last five trading days, and most are up over 1%. It’s definitely nice to see equities trade broadly higher, but with those gains, they are pretty much all trading at (or close to) overbought levels. The only one that isn’t is also the only one that is down over the last week (ILF).
ILF is also the only ETF that is below its 50-day moving average and the only one up less than 5% YTD. In looking at the performance of the ETF’s components, it hasn’t just been a handful of names dragging LatAm down. YTD, nearly half of the ETF’s stocks are in the red, including its two largest components (Itau and Vale) which both have 9% weightings and are down close to 10%. Sign up for Bespoke’s “2020” special and get our upcoming Bespoke Report 2020 Market Outlook and Investor Toolkit.