EWG Germany Weekly Chart Rising Wedge Negative Divergence Price Extension

Traders are flying into European stocks, tripping over each other fully willing to pay top dollar for any euro stock that can fog a mirror. They are worried about missing the next big wave of stock gains. Well, according to the chart above, short is a better approach than long. For all of those many traders flocking to play Germany and other euro nations from the long side, as Keystone's friends in Brooklyn would say, "Good luck wit dat." The red rising wedge is ominous. Indicators are coming down off overbot levels. The red lines show negative divergence in place for all three tops this year, and now for the fourth top. The blue dots show the price extension above the 20 MA above the 50 MA above the 200 MA which begs for a reversion to the mean. The collapses out of rising wedges can prove quite dramatic. The general opinion would be to run from Europe, not to it. If Germany is played, short is the preference, not long. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.