The sell signal issued for Emerging Markets (EEM) on 3/12/14 has ended. Because this signal was issued so close to the end of the apex of a triangle in smoothed sentiment it didn’t have much room to navigate.  This is the type of trade that highlights the difference between a trading signal and real life trading. After the sell signal the ETF has chopped around and hasn’t picked a direction yet.  As a result, if I had conviction that emerging markets are likely to fall then I’d wait until EEM points clearly higher before closing the trade.  As of the close on Wednesday the trade was up 2.2% so there is some room to wait without risking much money.  But as always it’s your money so you must make the decision on your own.

At the close on 2/27/14 a sell signal was generated for the Emerging Markets ETF EEM. This signal is a result of smoothed Twitter sentiment confirming the downtrend in EEM by painting lower highs (as price did the same), then breaking back below the uptrend line created by the positive divergence drawn from the last lows.  Sentiment is breaking down as EEM is being rejected at its 50 day moving average.  This suggests that short covering, buying, and positive statements about the security on Twitter are drying up and selling or negative tweets are increasing at a logical resistance area.