In the light of the events unfolding in the Middle East, I thought it would be worth looking at how ETFs trade on some Exchange United States correspond to Middle East are doing, and where they can be directed here.
First of all, to recapitulate the situation, we have seen in recent weeks, the following:
1 Change of regime in Egypt
2 Protests and requests for change of regime in Algeria, Bahrain, Iran, Yemen, Tunisia
3. A number of catalysts was cited for this popular uprising, a common theme is an increase in food prices.
Gulf, an ETF consisting of publicly traded companies with their shares listed on a major stock exchange in Bahrain, Egypt, Jordan, Kuwait, Morocco, Oman, Qatar or United Arab Emirates United, is an investment vehicle of interest to those interested in the trade of the scenario in the Middle East. A blow of eye to its table of prices reveals that the price of the shares in the Gulf began to decline as the revolution in Egypt has progressed. I believe that we will see here a contagion effect - which means regime change had spread throughout the Middle East - I think that we can see further price declines. In terms of techniques, I think that rallies may be a good opportunity to open short positions, particularly if the market remains under key moving averages.
In addition, while the Gulf has rallied in recent days at the time of this writing, volume has declined during this period (a case of divergence of volume). In my view, this strengthens the case for additional moves down in the Gulf. Investors and traders who wish to initiate short positions to keep an eye on the day 200 moving average, which can be used to a price level may bounce if it can be achieved.
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