The symbol “EWJ” is the Ishares Japanese Index Fund tracking the movement of a handful of Japan’s most popular stocks including Toyota, Honda, Hitachi and a host of others. The ticker itself acts as a reasonable “surrogate” for trading the Japanese stock index the “Nikkei” much like the symbol “SPY” closely tracks the U.S SP 500.
I don’t trade these ETF’s but understand that for those of you who don’t trade forex directly – a list of these types of “equity products” could prove valuable, as a number of my trade ideas/concepts can be mirrored through these “surrogates”.
The Ishares “family” of these “country related” ETF’s include a wide range including:
- EWA for Australia
- EWZ for Brazil
- EWC for Canada
- EWP for Spain
- EWU for United Kingdom
These ticker symbols track a handful of the “top companies” in each countries stock index – not the currency!
Often ( but certainly not always ) the correlation between a particular countries currency and its “stock values” exists as an “inverse correlation” as the value of a given countries currency moves lower for example – the “price” of its stocks inversely reflect “higher prices” and move upward.
For a real time example – you may see that I am looking to “get long” JPY , where a corresponding/inverse trade would be to “short the Nikkei” via the ETF “EWJ” ( which trades at just $11.52 )
Keeping a watchlist of these “country related” ETF’s is a great way to get in touch with some “big picture” movement, while still being able to place an affordable trade through your average day-to-day brokerage.
SHORT TERM TRADE TIP:
I am still looking at further weakness in USD and see opportunities to enter “short” via several currency pairs here again today ( if you’re not already in the trade).
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As well I see the recent “drop” in Yen as providing several low risk entries “long JPY” if indeed risk comes off here.