That Time We Shorted (EWI) iShares MSCI Italy ETF - Technical Analysis, Foreign Markets!

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the next symbol we are going to be

covering is a major market index but not

represented with the United States but

instead Italy this is it high shares

Italy ETF you’re hurting again we did

the before and afters in Discord not to

spoil anything we’re going to quickly go

through the video I’ll show you the

projection from the video and then we’ll

show you where it is today just like we

did on the FDX

made and had been in use for an extended

period of time at this point

foreign

thank you

foreign

foreign

foreign

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foreign

okay so right here we are looking at ewi

this is the ishares Inc ishares msci

Italy ETF it represents a lot of Italian

assets um

as you can see just like everything else

in the world it has its peaks in its

values it rises on its Falls um

pretty solid price channel here a

descending price channel so not

necessarily growing over time as you can

see the resistance keeps getting lower

and lower

also the lows are getting lower and

lower I’ll let me Mark those

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foreign

if the current downtrending price

Channel continues at its current rate

you could expect to see a ticker like

this move down

as much as 52 percent over a period of

let’s say 800 days so give or take uh

again this is some very macro stuff some

very big picture stuff this is again an

Italy ETF full of Italian assets um

they have some for a bunch of different

countries but this is this is the one

we’re looking at today

um

the reason you don’t see the financials

on the side is of course because it’s an

ETF it does have a dividend yield of

1.96 it’s better than zero it’s not

necessarily Amazing by any means again

the US national average being look at it

again we talked a lot about this uh

we talked a lot about this indicator

here today and just how [ __ ] it is

it literally just is an RSI just

portrayed differently as you can see the

RSI peeking out and it’s telling you to

buy and guess what when it’s our size at

the bottom it’s telling us like it’s

just telling you the exact opposite of

what to do it’s insane actually

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um

but that’s why we were explaining it

earlier

in regards to the cycle of emotions

right

when these things when this indicator

over here on the right same with an RSI

is super peaked out or a super strong

buy it can’t go from strong buy to

Stronger by it can’t do that it you you

should think think of it as a toggle

switch not you shouldn’t be placing your

trades in the direction this thing’s

pointing you should think of oh it’s

super bi so it’s already maxed out on

its buy right the only thing it could

then do is flip over to the strong sell

side of things which would then drive

those headlines people actually

following indicators such as this would

cause them to close their logs and

potentially enter shorts and you ride

that momentum like the direction this

indicator right here is pointing really

means nothing and instead it’s where

this indicator could then flip to is

what you should be interpreting out of

an indicator like this right because

again it’s at the very top it was this

video was filmed October 18th when the

Market’s read as Peak what a coincidence

and what were we doing we were telling

you everything super peaked out you

don’t want to be placing your trades now

if anything you want to be entering

shorts and that’s what we did that

that’s what we’re showcasing here in

this video for you the before and the

after right

that’s not bad um

if you were to be in this uh ETF

you’d want your average to be somewhere

along this

and descending uh support here this

green line could be looked at as a the

support for the downtrending price

Channel

right now it actually kind of represents

a good opportunity for a short for

people who trade like that or move like

that we have the monthly 180 moving

average acting as a resistance we’re

starting to see a little bit of flagging

here let’s get in there on the weekly

and see

see where that’s almost perfect flagging

right let’s look

flagging can be a sign of indecision

it’s pretty symmetrical but yeah that’s

perfect

the monthly 180 moving average which has

proven to act as a resistance numerous

times in the past as represented by the

red thumbs

it would make sense for this flag to

break out to the bearish side and move

down

um so it could make a great short

we’ve been going for six hours now six

hours

I can Market your clothes markets are

closed you can go for a while now let’s

see what else I have on my list here if

anything

Mystic is there any company you’d like

to see in particular

you guys see me talking to Mystics one

of my you may have mods at one point

okay so you guys just watch this video

with me I was explaining to you Italy

overbought just like everything was

at what time was this October 18th was

when we were live October 23rd when the

VOD went live

where is it today you might be asking

well

as you can see in the Discord here come

up where we were talking about it

I said the before the video this was the

chart we had in the video right this was

the chart the projection to the downside

this happens simultaneously with the US

this happened simultaneously with the

veas this happened simultaneously with

the vgks this happened simultaneously

with the aaxj like this should not

surprise you where I’m about to show you

right

foreign

doesn’t get more perfect than that like

if you guys would have been placing

these shorts they literally would have

been printing for you over the past six

months because it was it I can’t

emphasize the word was enough when we do

these that time these past tense before

after videos was at the resistance and

now it is way down here

out of support let’s go look at it in

trading view right

it’s gonna look really really familiar

to you guys it’s gonna look really

familiar

I need uh my Discord

could I have been more not only has this

chart not been changed at all since we

last talked about it at all just like

FDX

it just filled out perfectly look at

that the entry point right there just

right there below this candle right here

all the way down look at that currently

down

35

35 and not just a single company

but

an index that represents a variety of

assets across an entire country we don’t

just move singular companies we don’t

just move singular sectors we move

legitimately entire countries out here

and if you’re just seeing this video

okay it might be hard to understand but

we just finished talking about vgk right

and how it portrayed the same thing we

just finished talking about how all

these different us indexes have sold off

for the past six months and we were

there guys we were there at the top

telling you this is Peak right

it’s not just the s p that was peaking a

year ago but if you looked at all of

these indexes that represent asset

classes from all around the world they

were all simultaneously peeking out and

that is what allowed us to recognize

that maybe back in October when this

video was made would not have been a

good time to be buying anything

regardless of what country regardless of

what sector

maybe you shouldn’t have been buying

anything back then that’s what we were

trying to explain and we were explaining

it by showing not just how the rsis were

super overbought on a singular index but

how all of these things happen

simultaneously every time every time and

here we are a year later

all these indexes are now at the

supports all the rsis are no longer

overbought but instead they are oversold

across every single country

simultaneously if we use all of the same

indicators and knowledge set that that

allow us to short the entire world like

we did for the past year

those same indicators those same people

are now pointing that it is time to buy

that’s what I really want you guys to

understand right like honestly I don’t

even need to update this chart anymore

but

again this is the same chart you guys

just saw in the video I want to Overlay

some of the symbols we looked at

today right a a JX or was it XJ XJ right

Asian region oh damn but the same thing

right at the top came down we are now at

the support right bye bye bye this stuff

happens all the time right

I wanted to Overlay it here

what a coincidence that went Italy of

all places is selling off that Asia is

selling off what a coincidence that went

Asia of all places is bouncing at its

support Asia or Italy starts to run

right it’s almost like these things all

happen at the same time and that you can

use

information such as indicators such as

rsis look like I can I can overlay the

Asian region over Italy and I’m gonna

have a conversation about rsis and it’s

going to apply to both of them watch

okay so what is it that’s so interesting

about an index such as ewi why is it

somebody want might want to invest into

the ewi index well let’s first start off

by talking about their dividend they

have a 5.78 dividend that is

huge huge that’s actually the highest

dividend we’ve looked at today

regardless of whether it was an index or

a company the U.S national average for

singular company’s dividend is roughly

three percent

this is near double that okay what else

do we like about this company well let’s

look at the RSI currently

currently the RSI for ewi is oversold it

is currently at that ewi territory we’ve

already explained that this indicator is

basically the equivalent of an RSI look

at how freaking

look at how funny this is I’ve commented

on how silly this indicator is here and

how you need to be interpreting this

indicator as a toggle switch right you

don’t want to be because right now it’s

pointing at strong cell but that doesn’t

mean you want to be getting out no dude

you want to be buying because the only

thing this this indicator can’t go from

strong cell to Stronger cell it it’s

already done the worst it can worst you

anyone who would have been shaken by

this indicator is already shaking the

only thing it can do is flip back to

strong buy which causes everyone who

does care about this indicator to maybe

get rid of their shorts and start adding

Longs which would then drive that price

as it moves over right it’s basically an

RSI look look if you would have trusted

this indicator you would have been dumb

as hell because look this is where it

was in October October 20 on October

18th this thing was telling you to buy

it is since

decreased 35 in a major market index

here we are at the bottom and it’s

telling you to sell that’s Insanity you

guys need to be able to learn how to

interpret these and like that’s Insanity

can you believe that that’s like oh my

God that’s just so hilarious when when

you think about it it’s actually

hilarious and it does that every time

every basically if you’re always doing

the opposite of what this thing says

you’re in a good place bro

when it was in this pocket it was

probably telling you so when when it was

in this pocket it was probably telling

me about you would be on the opposite

side of it every time every time

um

so anyways the RSI super oversold this

is good you want to be buying when

things are low and selling high right

riding that momentum as it goes up uh to

further prove what I’m saying right now

in 2020 when the Market’s sold off right

um the RSI on ewi was super oversold

bottom end of the RSI towards that 30

Mark right and what happened after that

it proceeded to run 92 percent in a

major market index representative of

Italy crazy let’s further add more

supporting details to this RSI in 2016

the ewi RSI was oversold touching that

30 mark on the r side the low end right

what happened after that it proceeded to

run 56 percent guys 56 let’s keep going

let’s keep going

to add more sporting details in February

in March 1st 2020 12 2012.

the RSI was super oversold towards the

bottom and towards that 30 Mark what

happened after I proceeded to run 67 so

as you can see every time this RSI is at

the bottom end of the range that’s when

you want to be buying and on the inverse

of that right

not only did every in in 2020 like I

just said Asia also ran what a

coincidence in 2016 when ewi’s RSI was

down it also Asia also ran let’s go look

at the other one

in 2012 when the RSI was out it also ran

guys

in 2009 the RSI was super oversold on

ewi ewi right

it was towards the bottom end towards

that 30 Mark what happened after that

ewi proceeded to run 80 percent and

guess what also ran Asia these are

complete different sides of the world

guys but honestly if

the I’m able to use the RSI on ewi to

tell you where Asia’s going and that’s

what I’m trying to represent because all

of these Major Market indexes around the

world will have these indicators

flashing by by simultaneously and they

are added as supporting details for each

other that reinsure you that that is the

correct decision going for you and it is

that mentality that mindset that

interpretation of these indicators that

allowed us to recognize in August 2nd

2021 that everything was overbought

right because we were telling you to get

out of your ewis we were telling you the

markets were overbought we were telling

you the vea global indexes were

overbought and it was and and it all

came true it literally all came true

literally printed perfectly and that’s

what I’m trying to demonstrate how these

completely unrelated

asset classes in theory really do kind

of move in Tandem and it’s using these

indicators that don’t just appear on one

index like if only one of these 10

indexes I’m listing here had an RSI that

was oversold that wouldn’t be that

strong of an argument but when every

country is presenting the oversold

indicator such as an RSI such as a macd

such as a sentiment signal

simultaneously you buy those and when

it’s saying they are overbought and they

are high in the sky and they are

touching their resistances

you get rid of those

what’s interesting about this company

specific or this uh index specifically

is unlike a lot of other indexes Italy

actually does have a downtrending price

Channel it actually does as you can

quite clearly see this resist the

resistances are setting lower highs over

time and the support is setting lower

lows over time which means that is not

Italy as a country is not growing over

time

so if you were to be buying any of these

Global indexes I’ll maybe lean towards

the aaxj that we showed you Asia or the

Vanguard index we showed you for the

European region also fantastic

look at this we just got rid of the AA

XJ but we covered this in in this stream

we talked about this other European

symbol

and uh what a coincidence

look at how well they overlay on each

other

we were telling you months ago we even

have videos regarding these index but

again rsi’s overbought RSI is oversold

it’s about recognizing when these things

are overvalued and undervalued on a

global macro perspective that allow you

to leverage into these trades and really

get the most out of them

and just because there’s a declining

price channel on ewi doesn’t mean

there’s not money to be made here if I

was interested in placing a trade on

this where would I think it would go

soon well it is currently at support and

if you would ride it up to its Trend

resistance or the 180 so you could say

as much as

make sure to look here right because

this is a descending chart right the

monthly always keep in mind the time

frames are represented by the M or the W

right here next to this company symbol

or product symbol

this blue line is acting as a resistance

for this specific country so there’s a

chance that it would be 40 but it could

go as high as 50. 40 on a major market

index is huge guys because keep in mind

when an index moves a little its

underlyings can move a lot now should we

look at the underlyings real quick I

think we will

so this is ewi’s top 10 Holdings

representative of 68 of the things that

it is holding and we have anal Spa

these are a bunch of Italian names I’m

not going to be able to pronounce what

the like Ferrari is in there uni credit

Montclair that’s pretty cool actually

yeah that’s pretty cool

Ferrari Montclair not bad

so you can expect this to run as much as

42 I’ll even put this projection in

place right here for you guys right now

um

and who knows we’re gonna come back in a

year from now and it’s going to go on

right back up ain’t that crazy ain’t

that crazy

a little bit of time though

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so I think that’s everything that needs

to be said about ewi

I really appreciate all you guys who

stopped by the stream today thank you so

much again my name is Ethan Wren make

sure you check out my website

etheren.com for they can find links to

all my various socials we are currently

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make sure to sub or follow to get

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a hold of me and thank you guys so much

for stopping by the stream I really

appreciate it until next time whenever

that might be