EWZ and FXI approaching mid-2009 levels.With the SPY within 5 perent of an all-time high, and FXI and EWZ near mid-2009 levels, something has to give.
FXI trade ideas
General Moly (GMO) has tracked along with FXI (China) But look at what it is telling us now.
GMO is far more volatile than FXI and therefore accentuates the moves.
GMO appears to be alerting us to a downturn in the FXI.
It made sense to me to just go ahead an post this chart while I decide exactly how I would like to enter this trade.
Most likely I will buy GMO and sell short FXI, but I might only short FXI. It has also stalled from making new highs along with the US markets and could also be giving us a leading indication. The risk is small at only a few percentage points and the downside appears medium at 5% to 8%.
Cheers.
Tim 1:07PM EST January 28, 2013
FXI: Shorting the Chinese for a quick scalp.Lovely setup today. Rejection off double top resistance level. Buyers are showing weak volume, and stochastic crossing. Should be a nice swing setup.
Proprietary Options Trade:
DEC PUTS, Strike:37
EXPECTED ROI: 20-30%
