Watch China ETF’s
As the market takes a breather here, you might want to keep your eye on China. The FXI ETF is the one we watch. With the high level of stimulus that China has put in place we have seen a lot of commodity stockpiling in sectors like oil and copper. Along with this you have seen the speculative tail of that phenomena. Yesterday the FXI took out the high of the year, 3625, traded up to 3634 and then closed near the lows of the day at 3536. To us that is negative behavior.
No change in our positions, the stock market still seems to be overvalued at this juncture but is probably not in big trouble, but why risk your assets until you can find value again.
The EMA ETF Fund Nav was 1154 at yesterdays close.
7:44 AM CDT
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