Unusual dark pool activity was detected in EEM stock on December 13, 2019, after market close.

Unusually large block order came off the dark pool in EEM stock on December 13, 2019, in after-hours (brown shaded area) as shown on this volume candle chart.

This is the second time we have detected unusual dark pool trades in the wake of last week’s US and China trade deal.

China is rapidly expanding across Asia and emerging markets through their ‘One Belt, One Road’ (OBOR) agenda which is a Chinese economic and strategic agenda by which the two ends of Eurasia, as well as Africa and Oceania, are being more closely tied along two routes–one overland and one maritime.

China’s ‘One Belt One Road’ map from the excellent research report by Feng Yuan. Source: https://link.springer.com/chapter/10.1007/978-3-319-92201-0_4

China is viewed as winning in trade negotiations as they delayed further tariffs hikes, got the U.S. to promise tariff roll-backs, and have given little ground in negotiations to do anything about the $550 billion trade surplus they have with the U.S. In fact, China’s trade surplus came in at $38.73 billion in November 2019, which means 2019 will show China’s trade surplus with the U.S. as north of $450 billion, proving the Chinese are still winning with the U.S. after nearly 3 years of trade negotiations. China will continue to have the money for OBOR which is bullish for China and emerging markets hence those stocks are up the most last week on news of the China trade deal and NOT US Ag related stocks.

Institutional investors are buying Chinese and emerging markets stocks on a bet that China will win the trade war and continue their OBOR agenda across emerging markets.

In the short-term, I would expect a pullback in EEM within the uptrend channel on the daily chart.

finviz dynamic chart for  eem
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