Problems Still Abound In Thailand
The ETF Professor has been actively tracking the iShares MSCI Thailand Investable Market Index (NYSE: THD) since the political protests broke out in that country a while back.
Not long ago, it looked like THD might be a good long as there was hopes the protests would abate. That situation changed in a heartbeat after Maj. Gen. Khattiya Sawasdipol was shot in the head during an interview with CNN.
Yes, Thailand has a vibrant economy, buoyed by its close proximity to China, but the longer these protests last, the higher the costs are to the economy. In other words, THD's fundamentals are becoming impaired.
And that isn't even taking into account the technicals. With Thursday's close below $46, THD has violated uptrend support off the February lows and the ETF is looking ripe for shorting.
The risk/reward is about even here. A short from here could get you to $42, which is close to the 200-day moving average, but a stop should be placed at $48. Either way, emerging markets that aren't suffering from violent protests aren't the best places to invest right now, so there is reason to be long THD at this point.
