Selling the Netherlands

There was a big drop in the markets this week.... and I am selling Holland... or more specifically, I am selling to open, the iShares MSCI Netherlands ETF (EWN).

2014 12 14 selling Netherlands


Why am I selling to open? Because it looks like it's trending down:

  • the ma20 is below the ma50

  • there is a series of lower highs and lower lows

  • this last candle has just dropped below the ma20 (a good pull-back trade)

I really wanted to short sell the iShares Switzerland ETF, or the Swedish one, to open, as their graphs looked slightly better than the Dutch one, but my platform would not let me trade those particular  ETFs, but would let me trade the Netherlands one. I'm not sure why, because the 10 day traded volume on the Swiss ETF was greater than the Netherlands ETF .

The continental European markets are dropping generally, which is why my short TR European Growth Trust trade is doing well.

2014 12 14 TR European Growth Trust


I will probably add to this position during this next week. In fact, with the benefit of hindsight, it is possibly more sensible to trade one ETF or investment Trust that represents continental Europe, rather than one for each individual country. Anyway, the Netherlands position is now open, so too late to change my mind on this.....

Increasingly, I am attracted to the idea of trading ETFs which give sector, or national  exposure, instead of trading an individual company. I think that these may be easier to trade, with trends possibly being clearer. It would also reduce company-specific risk. I want to make my trading increasingly simple, and that includes limiting the possibilities of items to choose from. More on this in another post....

Meantime, if you are interested in my views on the markets this week, click here (10 mins).

If you would like to see how my open positions are performing, then click here (14 mins)

Have a great week!


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