EWZ is like a 3x dow ETF

Discussion in 'ETFs' started by stock_trad3r, Aug 24, 2007.

  1. pdwst33

    pdwst33

    And?
     
    #21     Aug 24, 2007
  2. time 2 buy

    when the dow crosses 14000 again in a month or so this will be at 70
     
    #22     Aug 24, 2007
  3. pdwst33

    pdwst33

    Alright let's get something straight. The EWZ trades over 13 million shares daily. Please tell me you don't think you're "hype" posts on here will have the effect of getting people to buy the EWZ and push it higher. This isn't a bulletin board stock nor is this a yahoo message board. Please stop the madness...anyone with a market data system can see that the market is rallying today, it's not just EWZ. You might be long and are making money, great....but please labor under the delusion that by hyping your "picks" you will push the prices up further. This market is many worlds bigger than you.
     
    #23     Aug 24, 2007
  4. Obviously I am aware that my posts can't move EWZ higher. Also an ETF can't be pumped like a stock because it doesn't use the traditional system of pricing as the case with a normal stock.
     
    #24     Aug 24, 2007
  5. pdwst33

    pdwst33

    Okay cool.
     
    #25     Aug 24, 2007
  6. ess1096

    ess1096

    Attached is a simple end to this debate. DIA vs EWZ = Apples & oranges.
     
    #26     Aug 24, 2007
  7. dave74

    dave74

    EWZ has some correlation to the Dow, just like every other emerging market fund.
     
    #27     Aug 24, 2007
  8. Agree
     
    #28     Aug 24, 2007
  9. Wow it is up a whopping 3% today

    when ewz rebounds it rebounds huge

    I would estimate EWZ is a 4x upside on the dow and 2x downside

    What this means is if the dow gos up .7% EWZ will rally 2.8% and if the down goes down .7% EWZ will fall 1.4%

    $70 will be hit easily in a few months

    Pfffft
     
    #29     Aug 29, 2007
  10. asap

    asap


    you're right on.

    correlation between world markets is close to 100%, which a direct result of liberalization of capital flows, on the fly electronic transactions and economic globalization.

    most international indexes move in tandem with the us while most of the discrepancies, after factoring the ETF beta, are attributed to currencies moves. since the USD is in a pronounced decline against its peers and etf's are traded in USD, these ETF's represent a long bet on those equities/countries and at the same time a short bet on the USD.
     
    #30     Aug 29, 2007