This Underrated ETF Could Fly Under the Radar
Michele Schneider | May 10, 2023 12:01AM ET
I have a designated radar screen for all the predictions and stock picks.
The picks especially remain a focus for short-term and longer-term trades, depending on market conditions.
In December, I wrote,
“This stock, Tetra Tech, made our radar when it announced that they are producing zinc-bromide used in batteries and for energy storage. Zinc-bromine batteries offer advantages over lithium-ion batteries. The battery materials are low cost, readily available, and with little capacity degradation. The chart looks amazing, bullish in phase and leadership with a clear risk under the 50-WMA.”
Since December 2022, Tetra Tech (NASDAQ:TTEK) has lived under the 50-WMA (week moving average) more than it has lived above.
Nonetheless, with earnings on tap after the close on May 10, this stock caught our eye again today, confirming the move from last week back over the 50-WMA.
On May 9, TTEK moved up over 3% after an inside day on May 8.
On the Daily chart, TTEK looks amazing over 148.50, which, interestingly, corresponds with the 23-month moving average resistance.
Real Motion indicates an increasing momentum, clearing the moving averages and the zero line.
Perhaps this will finally find some follow-through this year after 3 major bottoms with higher lows since January.
To be fair, in December, I wrote about emerging markets focusing more on iShares MSCI EAFE ETF (NYSE:EFA), the ETF, which tracks a market-cap-weighted index of developed-market securities based in Europe, Australia, and the Far East. It excludes the US and Canada and small caps.
However, as Global X MSCI Greece ETF (NYSE:GREK) was my sleeper trade of 2022, since December, I have come to love this ETF or the one of Vietnam, thus:
I am declaring VanEck Vietnam ETF (NYSE:VNM) the sleeper trade of 2023-2024.
Vietnam has experienced significant growth in its manufacturing sector, becoming one of the fastest-growing economies in Southeast Asia. Government policies to attract foreign investment, abundant cheap labor, and favorable trade agreements with other countries have helped.
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Samsung (KS:005930), Intel (NASDAQ:INTC), and Nike (NYSE:NKE) are a few that have set up manufacturing operations in Vietnam.
In addition, Vietnam has taken advantage of trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has opened up new markets for its exports.
Hence, sleeper.
The daily chart shows good consolidation above the 50-DMA. It still trades below the 200-DMA. However, there is a bullish divergence.
The 50, or blue line, is above the 200, or green line. Plus, momentum is rising while the price goes sideways.
h2 ETF Summary/h2- S&P 500 (SPY) 23-month MA 420
- Russell 2000 (IWM) 170 support - 180 resistance
- Dow (DIA) Dancing on the 23-month MA
- Nasdaq (QQQ) 329, the 23-month MA
- Regional banks (KRE) 42 now pivotal resistance-holding last Thurs low
- Semiconductors (SMH) 23-month MA at 124
- Transportation (IYT) 202-240 biggest range to watch
- Biotechnology (IBB) 121-135 range to watch from monthly charts
- Retail (XRT) 56-75 trading range to break one way or another
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