
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.