NFTRH+; China Short Setup

A very simple update.  As I was planning to cover some US market shorts (cover SPY and sell the SPXS bear fund) I also looked to increase exposure elsewhere.  I jumped the gun a little on this one, shorting 3x bull fund YINN yesterday.

But today FXI is inching below the neckline of a short-term pattern that would project to the SMA 200 if the weakness persists into a support break.  Much like the US stock market, I am only calling this a short-term situation and looking for a hard test of the intermediate uptrend.

fxi daily chart

Vehicles that could be used include a short against the above-noted FXI or as I did, a short of the leveraged YINN, or purchase of leveraged bear funds like FXP or YANG.  Using FXI as the marker…

Sell Short:  Current level if speculating on a support break, but a more conservative and safer entry would be a false breakdown and bounce back to the EMA 50 (currently at 37.43).  Recall here that my shorting activity is being done against long positions, so a bounce would not hurt me much if at all in the overall scheme of things.

Buy-to-cover:  34.50

Stop Loss:  A break back above the support line if strictly playing for a breakdown.  Above 38 if taking the more conservative route.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.