Monday, September 9, 2013

The stars and the moon are in line over the Chineese continent

Well maybe not, but the signal I'm seing is that in China (FXI) a megaphone pattern is testing a broken trendline. That usually doesn't end well, so I'm putting some money behind this guess. for now a portfolio allocation of about 20% right away. I'm both short FXI and long FXP. There is not much room for accumulation at this point because the chart seems near the trendline. Maybe the price could still move up a few percent and I might increase the size of the bet but I think it is pretty close to a turn. One thing that makes me a little cautius though is that I usually only see the megaphone pattern in reverse charts, and this is a long chart. But the pattern looks pretty clear so I'm taking my chances with this one but I probably won't hold on to it for long.


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