Bad things happened today after dark in emerging markets. We got an unusually large dark pool block trade in IEMG (Emerging Markets ETF) on December 9, 2019, reported after hours.

Unusually large block order reported over the dark pool in after-hours trading on December 9, 2019.

Looking at our volume candle chart going back 5 days, you can see how huge the dark pool trading was today, relatively speaking, in after-hours.

Price went up, then right back down so it looks like somebody wanted out of IEMG Emerging Markets and they found a buyer that wanted in and the whale trade executed. Why would somebody want to sell so much IEMG today?

Emerging markets will get hit hard if trade negotiations between the U.S. and China fail and we get an escalation in the trade war.

After dark, bad things were revealed about trade with China.

China has ordered all its government offices and public institutions to remove American computers amid trade negotiations between the two countries. This is likely to hit US companies such as HP, Dell and Microsoft hard. Source: China orders all American computers to be trashed as China-US trade war deepens

Does this move by China sound like a trade deal is just around the corner? I don’t think so.

This move by China all but guarantees a new round of tariffs against China imports will kick in this weekend on December 15, 2019.

No wonder a big institutional trading firm wanted out of emerging markets today.

finviz dynamic chart for  iemg