The plan for FXP, which I bought on December 28th, was to sell it as FXI approached support at the rising trendline and the whole number $160. Here is the post where I outlined the trade: FXI: Basing or Bombing?
In fact, the trade went 9 points into the green for me. I watched [[FXI]] near support, and instead of selling [[FXP]], I tried to squeeze a few more points out of it. I thought (hoped?) that the FXI may breach support and really make me some jingle. Instead the stock turned at support (as I thought it would when I initiated the trade).
Now I’m down 5 points on the trade. So, what to do?
I will sell FXP if FXI overtakes the 50 day average and breaks out of the triangle. This will be a very bullish development. Volume and the indicators are confirming that a breakout is likely. In fact, should this breakout occur, I will consider going long FXI.
However, never underestimate the power of the 50 day average and a downtrending line of resistance. Tomorrow will be the day.
I’m with you – I bought 12/26, but sold 12/28 for quick $5 profit in 2 days. I’m back in as of today at 68 and change, and volume or not, with retail going straight into the dumper, there’s no way FXI is gonna breakout. It might make it to the top bollinger at 183 tomorrow, but it’s going back to the 200 day (and possibly below) soon, and at FXI=148, I’d imagine FXP should be looking pretty good.
thanks for this post shed, because due to it, I just found a china stock I may want to go long.
Well hell Boone, don’t keep a secret!
I hope you’re right BK!
post pending
is it EDU or CHL? both look good esp. if they B/O above their upper trend line.
Wood:
You have very good market senses
However, from time to time, you panic out or rush in—like most people.
FXP will go higher.
Its components are fucking retarded monster market cap companies, which are ridiculously over valued.
Keep in mind, it is 200% inverse and swings hard in both directions. In hindsight, selling at $80 would have been nice.
However, if you recall how I fucked up my 2nd SRS trade, selling at $77— which went to $140 yesterday, these ETF’s move quickly when one or two of the components break down.
Several of the Chinese banks in it are trading 50x earnings.
I hear ya, and I certainly believe you.
However, I took the trade for technical reasons and so I must therefore exit it for the same reasons.
If I start entering trades and then changing the reason why I entered when it doesn’t go my way then I will throw out all discipline.
China is a safe haven. Odd. That being said I sold CAF.
Money is sloshing there, while fleeing western markets.
Eventually, it will crack.
Wood: Whats you think about going long WM & playing with Ragheads head?
Technical divergences all over the place. Its become apparent that Heli Benni, the PPT & Bush & Co., will not let a bank like WM fail.
Juice, WM might be good for a run to 18. If this is the bottom, I still say it trades in a range for 6 months.
coincidentally, I typed that 30 minutes before the JPM 4 WM rumors hit.
But you don’t want to buy in a takeunder situation, so I won’t go large on it.
Whether the resistance is coming from the fundies or the TA, who cares, looks like I may bank coin in FXP, or at least mitigate losses, after all.
Hello, I have a new blog, and would be interested in exchanging links.
I am Spanish and my blog covers the analysis of many equity markets.
I think it could be beneficial for both.
Greetings
congrats on CPHD shed, played that shit like the violin you love so much.
Wood,
Don’t feel bad. I planned to sell GBP/JPY that day but fucked up.