DGS Forecast


Bullish Case: DGS benefits from increased investor interest in emerging markets, driven by favorable economic indicators and potential interest rate cuts. This is supported by the return surface, indicating strong historical returns, particularly over long holding periods.


Bearish Case: Geopolitical tensions and economic instability in emerging markets threaten DGS performance. High implied volatility suggests market apprehension, especially under negative market developments, potentially leading to significant losses.


Potential Outcomes:

1. Continued upward trend due to positive economic data (60%).

2. Market volatility leads to price stagnation or slight declines (25%).

3. Economic downturn causes substantial declines (15%).


Trading Oracle: Execute a bullish strategy by buying DGS 56.00 Calls, leveraging the low implied volatility. Consider a debit spread with 55.00/56.00 strikes to minimize risk while maximizing profit potential over the next two months as macroeconomic conditions stabilize.


July 25, 2024


WisdomTree Emerging Markets SmallCap Dividend Forecast

DGS      WisdomTree Emerging Markets SmallCap Dividend











Correlated Assets

Assets that tend to move strongly with DGS



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.92)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.51)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.65)



Uncorrelated Assets

Assets with little price relationship to DGS



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.51)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.65)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.92)



Anticorrelated Assets

Assets that tend to move strongly against DGS



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.92)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.51)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.65)





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