After watching some other Chinese plays retrace (see my chart on CYOU from Friday), I have found that a pullback on FUQI is very likely. Of course, we at iBC like this stock a lot, but we also know when it’s a good time to take profits. Mind you I already sold this over a week ago and have been monitoring it, since this is on a high priority watch for me. Thus, if you are still long, I think it’s time to cut back on this position significantly. Friday already saw a 3% decline, so if you get a reflexive bounce early this week I would sell into it.
[Other high probable pullback plays: I’m looking at a reversal in trend in coffee stocks. I will begin shorting some in the near future.]
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Meanwhile, there’s a brief swing play in the making. I have buy on the retracement to the 23-24 level (too tough to give exact #, but there will be a heavy drop soon that should take us there). When this does occur I will do a 2-step buy with a quick sell near Friday’s intraday levels (approx 27.xx).