Similar to the US Stock Market, the New Zealand market has remained primarily bullish since 2009! So we are working on almost 10 years of the greatest bull market in history for the Kiwis!
Investors interested in the New Zealand equities have few choices. Luckily, ENZL represents excellent exposure and is balanced among a diverse set of sectors. Daily volume in the fund is respectable, though spreads can be significant. ENZL scores poorly for block liquidity, and a single creation unit accounts for a significant share of the daily volume in its underlying holdings. Overall, this is an efficient fund providing broad exposure to the New Zealand equities market.
Let’s take a look at the charts to see how we can add them into our trading pattern.
New Zealand’s (NZX 50 INDEX GROSS) has been significantly bullish since the bottom in early 2009 and currently shows no signs of long-term weakness since the mild dip in 2016.
New Zealand’s index, when viewed on a weekly chart, shows that it supports the bullish overall trend of the market with no current weakness. Mild weakness was shown in early 2018 with the pullback int he US Markets, it would have been wise to look to the S&P500 chart of the US market to help make a decision of following the weekly lights.
The NZX 50 has shown signs of weakness on the shorter term daily chart but currently remains bullish.
A summary review of the charts concludes that if you are using the Evergreen strategy, New Zealand appears to be a Green Light opportunity as the Monthly, Weekly, and Daily charts are in lockstep bullishness. A person who enjoys the volatility that the Daily charts provide can see that the red lights may provide notification of an upcoming entry point to longer-term gains.