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Not So Far East: Investing Opportunities in Southeast Asia ETFs

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The sub-region is on track for sustained growth, so what are the best levels for entry?

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ETF Charts and Investing Analysis

Below are monthly charts for this region's select country ETFs (exchange-traded funds). I decided to use monthly charts as the thesis that sustained economic growth is based on a long-term view, and thus the charts should reflect this intention. Within the charts, I've created some horizontal price levels where there's volume by price (learn more about volume by price) as well as retracement levels that look to support good entry points for long positions.

For long-term positions, I highlight levels where I want to get in and use patience and a percentage buying plan as the stock goes lower: 25%, 25%, and 50%. If I don't get my fill for the first and second price points lower, then I'll end up being long with only a 25% position. However, I also adjust opportunity levels as time goes by and previous resistance turns into support. Note that the percentages listed are in relation to a single position size, and are not a percentage of an entire portfolio.

Let's take a look at the two most advanced economies in the sub region: Hong Kong and Singapore. You can see how the charts look very similar. Entries between the blue horizontal lines are probably good initial points of entry. However, I think a monthly close above the upper horizontal line will probably turn that resistance into a good support level.

Hong Kong Index Fund (NYSEARCA:EWH)


Click to enlarge

Singapore Index Fund (NYSEARCA:EWS)


Click to enlarge
Author has positions in EWH, EPHE, EWS, EWT, EWM, THD, and IF.
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