Global ETFs Gearing Up for Another Run

At present, I am already holding two international ETFs: iShares Xinhua China 25 (FXI - commentary - Cramer's Take) and iPath India Index (INP - commentary - Cramer's Take). In case you missed my original buy entries, the present short-term correction in both ETFs offers secondary, low-risk buy entries. This is shown on the charts of FXI and INP below:

iShares China 25 TradeStation

iPath India TradeStation

In addition to the international ETFs illustrated above, others to consider include iShares Japan (EWJ - commentary - Cramer's Take), iShares Hong Kong (EWH - commentary - Cramer's Take) and iShares Mexico (EWW - commentary - Cramer's Take). (To see the complete realm of international ETFs I trade, download and check out my free Morpheus ETF Roundup, a good piece to review over the holiday week.)

We don't expect stocks and ETFs to have much momentum until volume returns to the market, at least not until the new year begins. As such, be careful to avoid overtrading throughout the next week; low-volume markets are notoriously choppy.

If you're buying any pullbacks in the international ETFs, the best plan of action may be to simply set your stop and forget about it until the new year. Taking a "set it and forget it" approach to stops over the next week will help prevent the urge to overtrade in a light-volume market, while still enabling you to capitalize on opportunities that may follow through when the pace of trading eventually picks up.

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At the time of publication, Wagner was long FXI and INP.

Deron Wagner is the founder and head trader of Morpheus Trading Group. His daily focus is managing and trading the Morpheus Capital Hedge Fund, which he founded in April of 2004. He also teaches his trading methodology with The Wagner Daily, The MTG Stalk Sheet, and The Wagner Weekly newsletters.