IIF Gives an Up Signal 6/17/12

The India Fund IIF gave an up signal at close of business Friday.

The chart shows the price nudging the 50 day exponential moving average, the red line, and still well below the 200 day exp mov avg black line. I would consider taking a small; long position but keep in mind that many of these trades below the two averages can be short lived. Actually we have no way of knowing how long it will last. As long as one takes all the trades, one would hit pay dirt in a selective fashion, and not have to bear the huge downside losses.

I am mindful that the S&P 500 is still in an exit long signal and is also nudging the 50 day exp mov avg. It has one major difference. The price is above the 200 day exp mov avg, the black line and the 50 day ema is above the 200 day ema. That is still bullish.

With the elections over in Greece this weekend, the conservative party won and the world is relieved for the moment. The Greeks were probably wanted to shed the austerity programs but the fear of the unknown; and what would be the consequence in money devaluation trying to bring back the Drachma currency probably scared people even more. The cycle is not over. There is considerable pain ahead of many countries in Europe; Spain, Italy etc. and perhaps the same awaits us in the US eventually, who really knows? For now the US has certainly lead

Just to be clear, this is not a political forum. All I am looking at is the consequences of these world event decisions through the technical charts and safely navigating our nest egg.