Profit from trading international ETFsHow To Profit From Trading International ETFs

Let's Get Started...

What are international ETFs? ETFs that trade on U.S. stock exchanges, but

whose underlying indexes are comprised of a basket of foreign stocks and ADRs

What are the benefits of trading them? Most have relatively low correlations to

direction of major U.S. stock market indices Some foreign countries & regions have

economic cycles that are not necessarily in sync with U.S. economic cycle.

UptrendingUptrending DowntrendingDowntrending Range-boundRange-bound

Determine overall trend of main U.S. stock market indicesDetermine overall trend of main U.S. stock market indices

Find ETFs with relativeFind ETFs with relativestrength or weaknessstrength or weakness

Find ETFs withFind ETFs withrelative weaknessrelative weakness

Find ETFs withFind ETFs with relative strengthrelative strength

Confirm with longer time framesConfirm with longer time frames

Buy strongest ETFBuy strongest ETF Sell short Sell short weakest ETFweakest ETF

Buy and/or Buy and/or sell short ETFssell short ETFs

Quickly finding relative strength and weakness...

Keys to relative strength trading

Relative strength must be assessed on a relative not absolute basis

Relative strength should be spotted quickly; if it takes too long, there is not relative strength

ETFs that do not fall when the main stock market indexes fall are the first to surge higher when the broad market bounces (and vice versa)

Don't “hope” a weak ETF will “catch up” to those with relative strength

Finding ETFs with relative strength

Confirming with longer time frame

Finding ETFs with relative strength

Confirming with longer time frame

Confirming with longer time frame

Confirming with longer time frame

Finding ETFs with relative strength, BUT...

Lacking confirmation with longer time frame

Lacking confirmation with longer time frame

Putting it all together – An actual recent trade

Putting it all together – An actual recent trade

Putting it all together – An actual recent trade

Summary overview of strategy

1) Determine direction of overall trend of main U.S. stock market indexes

2) Use “percentage change” charts overlaying various international ETFs vs. the S&P 500 Index

3) Quickly find ETFs showing the most relative strength or weakness to the broad market

4) Look for confirmation of chart patterns on longer time frames

5) Use standard breakout or pullback strategies to buy or sell ETF trades

Profit from trading international ETFs

To learn more about our proven strategy for swing trading stocks and ETFs, visit MorpheusTrading.com

Questions? E-mail us:

editors@morpheustrading.com