#$ewk

Here are some of the most noteworthy new highs and lows across the markets for Friday, February 14, 2020.

Real Estate ETF $IYR Hitting New All-Time Highs

NVIDIA $NVDA Testing All-Time Highs

Belgian Stocks Testing Decade/Range Highs

German $DAX Now HITTING All-Time Highs

Euro Hitting ~3-Year Lows

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Belgium Stock Market At Potential Confluence Of Resistance

In December, we noted the relative strength of the Northern European stock markets. This included Belgium. Additionally, last Tuesday we commented that the European markets appeared poised to "blast higher". While that post referred to the broad STOXX Europe 600 index, the Belgium Bel-20 Index was also poised to make a move higher. Indeed, over the past week it has done so, soaring some 6% to new 52-week highs. At current prices, however, the Bel-20 may encounter some resistance in the form of 3 key Fibonacci levels spanning 3 different durations:

61.8% Fibonacci Retracement of the 2007-2009 Decline ~3530

61.8% Fibonacci Projection of the 2009-2011 Rally ~3530

161.8% Fibonacci Extension of the September-October Decline ~3510

The Bel-20 Index closed yesterday close to 3550, just above the listed levels. However, it did pull back today to close right on that key 3530 level. We are not suggesting this is the end of the road for the Belgium rally, or other Northern European markets that have likewise broken out. However, given these key Fibonacci levels and the strong gains over the past week, the market may need to consolidate some before moving higher again. In other words, don't be surprised if Belgian stocks waffle here for a little bit (sorry.)

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They say no two snowflakes are alike. So it is with European bourses. While it's widely known that the many of the equity markets across the continent have experienced their share of difficulties lately, not all of the markets have been acting like Euro-trash. So while some of the "core" European countries like France are making lower highs and some of the PIIGS are making 52-week lows, many of the markets across Northern Europe have actually been making new 52-week highs, similar to the S&P 500. To wit:

OK, Switzerland isn't in Northern Europe, but the rest are. Throw in Denmark which is also at new highs and you can see the theme here. The one exception in Scandinavia is Norway which has gotten rocked due to its oil exposure.

It is possible that these will all result in false breakouts. After all, if there has been one phenomenon as consistent as the V-Bottom lately, it has been the false breakout. The nice thing, to us, is that the markets all look to be testing the breakout area so if they are false breakouts, it should be apparent soon.

There are ETF's available, by the way, covering all of these markets. One problem you may find is that some of them may not seem to be tracking the cash indices. A lot of that has to do with currency risk as their home currencies have been tumbling versus the dollar. So that is certainly a consideration to keep in mind.

However, if one must have European exposure, or for some reason looking for it, there is good news. If you are not a fan of buying down-trending markets like France, let alone falling knives like Greece, there are other options. Just look north.

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