Global Market Update - Keeping a Close Eye on Europe; Especially Germany

Europe Weekly

Europe has been in a major downtrend since June 2014.  It has been acting much better recently, & I will be watching a few major ETF's closely.  

Above is the $VGK, which represents large cap European companies.  It's most heaviest weighting is in the United Kingdom (~31%), with France (~14%), Switzerland (~14%), & Germany (~13%) having a big impact as well.  It's heaviest sector is Financials, which make up close to 19% of the fund.  It currently yields ~3.3%, but is only paid out annually towards the end of December.  The Expense ratio is very nominal at 0.12%, as most Vanguard funds are.  

Between the continued fallout of Brexit & the risk associated with European Financials, this one could certainly turn back down at the drop of a dime.  I'll be watching the $50 area for a weekly close, before I put on a position.  

Taking a closer look at the European Markets, Germany has broken above it's 50 Week Moving Average (a very bullish first step in hammering out a long term bottom).  The $EWG also closed right at $26.50, which was it's most recent high from April.  I like this to test $27 in the upcoming week.  If we get a higher close on the weekly chart above, I will likely leg into a small position.  

Good luck & God bless!