RS Divergence Warning: Why ARGT Lags EWZ and ILF Despite Similar Setup
Educational Thread — RS Bearish Divergence: Why “Cheap” Isn’t an Opportunity $Global X MSCI Argentina ETF(ARGT)$ vs $iShares MSCI Brazil ETF(EWZ)$ & $iShares Latin America 40 ETF(ILF)$
One of the few groups hitting 1-month RS highs ahead of the Mar 31 pivot in $SPDR S&P 500 ETF Trust(SPY)$ and $Invesco QQQ(QQQ)$ was LatAm equities which can be expressed via directly ETF execution into $ARGT $EWZ $ILF.
They’re driven by the same regional macro factors: $DXY weakness and shifting Fed rate expectations. All 3 also broke out of similar bullish descending wedge structures.
While I positioned in $ILF and $EWZ since 31st March, I advised my group against the idea of chasing $ARGT this week on the current base structure as a delayed entry into the same theme. Despite the similar setup, the outcomes diverged significantly—something that becomes clear when you assess price momentum relative to the market via relative strength and, more importantly, versus its peers.
$ARGT currently remain resisted beneath 8th April gap up across the market.
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