I look at a lot of charts.

In a given week, I’ll rip through hundreds… sometimes over a thousand. 

Each one tells us a story. Together, they help me form a complete view of the market.

But not all charts are created equal. Some tell us little. Others speak volumes.

Let’s take a look at one of those. This chart shows the performance of the iShares MSCI Emerging Markets ETF (EEM), a fund which invests across many emerging market stocks. 

For many years, emerging markets were “dead money.” They went sideways while US stocks hit new highs after new highs. 

That changed a couple months back. In January, EEM broke out of a nearly two-decade-old base: 

Breakouts like this are no joke. They represent huge changes in character for a stock or, in this case, a fund.  

But what if you don’t own emerging market stocks? Should you care about this development? Absolutely. 

Emerging market stocks are a proxy for global risk appetite. If they’re performing well, it’s generally a good sign for the broader market.

In this case, EEM is holding its breakout… even after pulling back 9% in March. 

That’s promising, especially considering the circumstance. Many of these countries aren’t energy-independent like the United States. They depend on the Middle East for oil and natural gas. 

They’re more sensitive to the ongoing conflict.

This is one of the most bullish charts in the entire market.

Consider buying EEM today.

Justin Spittler Chief Trader, RiskHedge