FXI and Bullish Markets

FXI, to remind others is an ETF that invest in chinese ADRs. I use it quite a bit to judge market performance, more so than looking at INDU's charts or such.
At the 190 mark premarket, if we get through here...I think the markets are set for a bullish move into the end of the year. Thoughts? Either side's arguments are welcomed.

FXI closed at 195.74 yesterday, well above the pivot point. Hang Seng markets closed green so we should be good to go in FXI, thus indicating a green day for the markets today.

I received a PM regarding FXI and FXP's performance. I believe if we can post a gain today on FXI, we're on our way to $210-220 in 2-4 weeks, which would calculate out for FXP to be roughly ~$50-55. Notice the odd looking inverted head and shoulders formation formed, even though its not perfect, it's a great bullish indicator..looks like the exact same one on JASO before its huge run a few weeks ago.

If indeed this is a turnaround, lots and lots of chinese stocks to trade and buy in again, I bought some CNEH and JRJC yesterday looking for a nice move up over the next few days. Ask chinaman711 in the chatroom for more chinese picks, he's the specialist. :wink:

By the way, let's have some more people take part in the monthly sim! It's good practice for those not able to daytrade and wishing to do so. You'll might be put off by the 20min delay on trades but it turns out well in the end.

Great pick and solid fib bounces. I'm gonna run one on the nearest swing. This has potential in many ways and I think your target is on the money.

I played the sims and contests a couple times. I can't fix trades on those time horizons. Of course a guy could play AAPL, GOOG, RIMM, and BIDU enough both long and short I guess

I'm looking to buy some today to hold until January for a swing trade, looking good to go. Wish I could short FXP, but shares are impossibly hard to find.

Edit: Bought my position at 192.81

In theory, you could buy a couple of DEC65 puts for about $6.00 [~$1200 total for two contracts] and get about the same total dollar profit and loss action on price shifts as shorting 100 shares.

I say, "In theory," because there are only 34 of those puts open right now. With a 5.56x6.30 spread, and a delta of just over .5, the first $1.20 or so of movement in the FXP price would just go to cover the spread.

I'm beginning to this that options and pennies share some characteristics favoring the market makers. Usually, however, I think there is better information available on the underlying stock for an option than there is for most pennies.