EDZ

EDZ is a leveraged short on emerging markets, it's one of the ideas I felt would be a theme for 2011 so I've been keeping tabs on it for early signs. This trade is much like the FXP trade posted earlier today.

 Like FXP, we have a small double bottom, unlike FXP, it was tested with a false breakdown yesterday, I'm a little surprised FXP didn't do the same. As you can see volume is up nicely today on the break higher.

 On the daily chart, like FXP, we have the positive divergence at the double bottom in MoneyStream and my STOCH/RSI combo is giving a bullish signal.

 Here's 3C hourly within the double bottom (not a true double bottom as those are much larger), we have accumulation at both bottoms and some distribution crating the second bottom, but the relative position were the distribution occurred was very high, so it wasn't very bearish.

 The 30 min chart confirms the same as above.

 Here the 5 min chart shows yesterday's false break and the successful signal 3C gave on that false break.

 This is today's move thus far, which is confirmed.

The one difficulty in the short term is several resistance zones very close together, a break above $19 will be very bullish. For now, there's several ways to handle the trade, you can start accumulating now or wait for resistance to be over taken and several combinations of each strategy. If you are interested in the trade and want to fit a strategy for your trading style, feel free to email me. I do like what I see developing here in EDZ.