In 2023, one of our best callouts and profitable swing trade was buying the Vietnam ETF (VNM) on the lows and riding it to its peak in September 2023.We did a hold a tail though into the correction and finally exited in January 2024.We have been aside since.With the huge sell-off in equities, we revisit trades that trended well and that still have a fundamental story consistent with why we did the original trade.Have a 1-minute listen to this guy talking VNM GDP at 6%!However, like always, the charts say all,One of my favorite patterns is the Island Bottom.However, I like to see an Island bottom pattern confirm on a second day.Note the island bottom with the gap down to start the week, followed by the gap up on Tuesday.The Leadership indicator shows VNM outperforming the SPY.Yet, why we want a wee bit more patience is because our momentum indicator, or Real Motion, has yet to see the red dots clear back over the Bollinger band.That would be a mean reversion signal if that happens tomorrow.If you are wondering about risk, should VNM confirm the island bottom, (gap must hold), the risk is to be under Monday’s lows OR-If you are more conservative, you do not want to see the gap filled thereby can use the highs from Monday as your guide.More By This Author:Is The Correction In The Market Over?
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