Friday, December 12, 2008

Bookkeeping: Starting Xinhau China 25 (FXI)

Posted by TraderMark at 12:58 PM TweetThis
We have never owned the "long" version of this instrument, so this is a first time buy - all the same chart comments as JEC... strong move up, now a pullback to support - if the "good times" continue we want to own these type of charts. I have reservations about the dream of "China is strong" in 2009 but perception is reality. I'm going with the herd.

We are creating a 3.0% position with purchases in the mid $29s.

Please note we entered the day with a 57% cash stake, so consider this as we brandish our Kool Aid...

Long Xinhau China 25 in fund and personal account


Posted by TraderMark at 12:58 PM Comments (1) | Edit This Post | Create A New Post

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1 comments:

jegan said...

Just came cross this... I'm sure you are aware that China is iffy, and that the FXI/FXP can be a nauseating roller coaster.... Enjoy the ride!! jegan

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Chinese Officials Sound Alarm

Two Chinese officials are warning their country may be headed into a tailspin. According to Bloomberg, Li Yizhong, head of the Ministry of Industry and Information Technology, and Liu He, a senior economic policy official, said overcapacity exists in all industries. They're also of the mind that China, the world's fourth-largest economy, won’t bottom until the first quarter of next year.

Exports, imports and manufacturing activity dropped significantly last month, and should continue to do so before a stimulus package kicks in in the second quarter of 2009, He noted.

China’s economy has cooled for the last 5 quarters. The World Bank forecasts a 7.5% increase next year, the slowest in nearly 2 decades.

From the Bull Pen: Bulls can look to China Mobile (CHL) for a short-term tactical play. The stock broke its intermediate downtrend and is currently basing near $50 - a healthy sign. Sell stops can be set 2 points from entry.

From the Bear Cave: Bears might see a better opportunity if the China 25 ETF (FXI) can rally to near $37. This marks the 50% retracement from its intermediate downtrend. If and when.

December 12, 2008 6:58 PM  

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