Tuesday, November 11, 2008

China's Chart Give's a Clear Answer

The FXI weekly chart is quite illuminating and a good example of the importance of volume. What does the current volume pattern tell us? Compare to the previous volume patterns during the top and bear run, and the answer is clear . . .


tradewell said...

I see 2 problems with this:

- FXI is a derivative, so while demand for shares may increase in the U.S. this is not a reflection of how Chinese charts are actually doing , volume-wise

- Do you look at macro-economics at all? Seems to me they will be hit hard during this recession.

Of course, if your time horizon is a week for a swing trade, none of this is a concern.

The Market Speculator said...

I am looking at nothing more than the FXI chart.

MAX2205 said...

I wouldn't short this at all. Look at that capitulation vol. Look at that RSI comming up. Look at the potential V bottom.

May be later but not just yet