Outside the U.S. A Powerful New Bull Market Is Taking Shape

For the first time in a long while, global equities outside the U.S. are pulling ahead—and one major developed-markets ETF is quietly stealing the spotlight. With investors looking beyond domestic saturation, lower relative valuations across Europe, Japan and Australia are suddenly attractive again. Couple that with the recent uptick in foreign companies gaining strength, and the eagerness to diversify after hefty U.S. gains, and you’ve got a setup with real momentum. The ETF I’m monitoring is already trading above key trendlines, and it’s not just showing strength—it’s flashing breakout signals. This is the kind of move that needs to be on every trader’s radar.

The ETF in my focus today is the iShares MSCI EAFE ETF (EFA) — a benchmark tracking some of the world’s most developed markets outside the U.S. And right now, it’s firing on all cylinders. After months of steady momentum, EFA has officially triggered one of my favorite long-term confirmation tools — the “PowerTrend” Buy signal — with its 1-Month Price now trading firmly above the 10-Month SMA. This is the kind of crossover that often marks the start of durable, sustained uptrends rather than the tail end of one. The initial shift in momentum began back in January, but what we’re seeing now is clear evidence that the bulls have seized control and aren’t looking back. With trendlines aligned, strength broadening, and price action clearly moving higher, EFA’s chart is sending one unmistakable message: this breakout is likely not done yet.

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To capitalize on this kind of technical strength, I’m targeting EFA with a directional call option purchase. The price pattern is rock solid, the momentum is undeniable, and when a move like this takes hold, I want a position that can fully capture the upside. A slightly in-the-money call at current prices offers exactly that — the potential for a 163.4% gain if EFA advances just 10% by expiration. That’s the kind of outsized setup I look for: limited downside, massive upside if the trend continues to play out.

If you’d like to see more trades just like this one — backed by the same technical precision and momentum logic — then you’ll want to check out our Options For Income Newsletter. Each week, we deliver multiple actionable trade setups designed to help you grow your account with consistency and confidence. And right now, you can get your first full month for just $1 — less than the cost of a cup of coffee for four weeks of high-probability trade ideas. This offer won’t last, so don’t wait — join today and start trading smarter.

Wishing You the Best in Investing Success,