ETF CORNER

FXI : Zai Jian !

This chart below shows how FXI (China ETF) will likely top out ! I think FXI could still make a last push to $44.20 before this rally of 2009 is finally over and done with and we can finally say goodbye to FXI once and for all ! BTW : Zai Jian means goodbye in Chinese !

FXI : Terminal velocity ?

Since the rally off March Lows in FXI (China ETF) the velocity of the rally is decreasing. The blue curve is becoming flat, the dips (B,C,D,E) that have being bought are becoming closer to each other as we move up and the prices are increasing to a smaller extent each and every time. At one point the buy the dips won't work anymore, and I'm really starting to wonder whether the last dip (E) was the last dip that could have been bought and that this blue curve will be broken on the downside !

FXI : China on the verge !

Still holding on to my FXP(Double short FXI) until FXI reaches at leats $30 ! FXI is right on an important support line.. any significant break on the the downside you better watch out below !

FXI : The Bull Market in China is over !

In case you've missed it, FXI (China ETF) has topped at the end of July 2009 a little below $44 which represents a rise of over 100% ! China has bottomed in late 2008 earlier than the US Indicies did ! Now the opposite is occuring : China is topping out,and the US Indicies (Dow,Nasdaq,SP500) will follow suit ! My prediction is that FXI will retrace 50% of this whole move up before the end of the year ! I have highlited the downside risk in red ! My next target for FXI remains $32 (50% ret level) which  also coicindes with the longer term support S1! You can either short FXI,or buy double short FXP(Double short FXI) or for the traders with "cojones" buy EDZ(Emerging Markets triple short) which also is inversly "correlated" with FXI.