We alerted subscribers two months ago to the likely outperformance by a select group of foreign ETFs which we predicted would gain on the back of a falling dollar. Not only have these stocks hedged our bearish bets on the US equity market but they have made sizeable gains. This short note updates our position on the various ETFs we cover.

Taiwan iShares EWT has the best technical outlook as it held above key support at $9.5 when we first mentioned it back in August. The rally slightly penetrated downtrend resistance above $11 this month and has since consolidated above key support at $10.50. Recall that two weeks ago we highlighted this support level as critical and today's rally through downtrend resistance may indicate that EWT is ready for its next advance towards our target of $14. Risk is below $10.50.

Australia iShares EWA continue to gain on the back of renewed strength in commodity prices and the Australian dollar. Australia's stock market continues to reach new all time highs yet remains well off the radar of the media. As such we remain confident that there are further gains ahead in line with our bullish outlook on AUD/USD. Risk is below $14.50.

Japan iShares rebounded sharply this morning as both the Nikkei and JPY rallied together. We alerted subscribers two weeks ago to the breakout in JPY and feel that EWJ is equally well positioned to rally. Above $10 encourages further gains. Risk is below $9.5.

FX Money Trends provides analysis of the foreign ETF and FX markets three times a week in the subscription service FX Focus. For more information please visit www.fxmoneytrends.com/products.htm