Friday, February 11, 2011

This is why we don't follow the Crowd

Sometimes when you see an opportunity, it takes time for that opportunity to emerge-like the bearish stance I've had on emerging markets for several months now.

We just found out we're in record setting territory for Emerging Fund Withdrawals and my favorite, EDZ should be on the way toward it's target, which is near $70+ so there's still plenty of room left in this trade

Here's an article and here's a snippet from the article

"In the week to February 2nd, however, emerging-market equity funds shed $7 billion, or 1% of their total assets, as events boiled over in Cairo. According to EPFR, which tracks such flows, this was the third-largest withdrawal on record, and the first of any size since the crisis. "


Here's EDZ- a favorite leveraged ETF here at Wolf on Wall Street




and Here's the most recent analysis

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