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Rank: Elite
Groups: Member
Joined: 4/25/2009
Posts: 27
Points: 144
Location: USA
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FXP is a great way to play a Chinese down market. This ETF can deliver outsized huge gains. I am thinking of trading it using a 50 day moving average. Any comments.
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Rank: Admin
Groups: Admin
Joined: 4/25/2009
Posts: 74
Points: 200
Location: USA
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Wow, that short ETF is really down. Looking at it (other than 50 MA) there is a bullish divergence is RSI, RSI just crossed 50, and MACD is ready to go over the ZERO line. It seems to be ready to trend up, and if so, overall this would be a good thing for SHORTS.
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Rank: Elite
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Joined: 4/26/2009
Posts: 64
Points: 460
Location: USA
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Looks like there is a pull back in Asia today... lets see where it goes.
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Rank: Senior
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Joined: 4/27/2009
Posts: 17
Points: 51
Location: USA
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Saw a report on Bloomberg yesterday that apparently the Shanghai comp is 60% retail, self directed traders, if memory serves, 44% of the entire index value is in the top 10 stocks.
Put it together, knowing there is a hedge fund presence in that market, and at the first sign of a few too many bad earnings reports and it's all over but the cryin'.
On the other side of the scale, 60% of irrational exuberance is still 60% of irrational exuberance, if a market consists of that large a percentage of newcomers...they might not even realize the meaning of over-valuation.
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Rank: Elite
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Joined: 4/26/2009
Posts: 64
Points: 460
Location: USA
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Interesting.... Listening to Bloomberg radio today they were discussing how China Topped out before the U.S. and how it bottomed before the U.S. The caution in that program was that China is now starting to fumble and it may be an indication of what we will see in the short term in the U.S. Markets. I read in a blog post on the talk about earnings season being about done, so the summer lull may add to a pull back.
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Rank: Elite
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Joined: 4/25/2009
Posts: 27
Points: 144
Location: USA
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Please note that FXP peaked out at 183 and now is trading at 10. When the Chinese market peaks this Etf might have the power to be a ten bagger. I think that it pays to watch this one since the upside could be substantial.
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Rank: Elite
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Joined: 4/27/2009
Posts: 25
Points: 350
Location: USA
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Maybe a short term way to trade it is on a big rally day like on Friday. FXP was down Friday but closed up over 1% after hours.
It is a very tempting play.
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