Tuesday, November 23, 2010

Bookkeeping: Limit Order for iShares MSCI Hong Kong (EWH) Hits

A limit order I put on in the past few weeks for some Asian exposure via iShares MSCI Hong Kong (EWH) hit this morning at $18.62.   Due to the extended nature of this ETF over the past quarter and two substantial drops (on large volume) the previous 2 days I am going to have a tight leash on this one; I could be out in a few hours in fact.  But I continue to force myself to try to find some long exposure in case my base case that we have a real selloff coming does not work out; I have similar purchase orders for ETFs of India and Indonesia - but neither is close to my target yet.

Looking at late October lows we have a plateau of $18.40s to $18.50 and the ETF is near there now.   Since my entry is relatively favorable I'll give the name a 1.25% berth (max loss) or a move just below $18.40 to stop out at.  Until then, I've started off with a 1.25% exposure....

Hong Kong is sort of a more structured proxy for China; with that market taking a 13%+ hit over the past week and a half - Hong Kong has reacted in kind but with less beta.   EWH is a very liquid ETF at 7M shares traded a day and $2B in assets, so easy for a fund to move in and out of.  (more information on the ETF here)

Long iShares MSCI Hong Kong in fund; no personal position


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