China Large Caps vs. US Large Caps

I am not in love with the FXI/SPY ratio (yet). But since the height of the trade war hysterics in Q4 the trade warrior from the east is out performing the warrior from the west.

fxi spy ratio

Stepping out of the relative and into the nominal, is a chart I’ve liked since the break above former resistance. We’ve kept tabs on the daily picture in NFTRH each week.

fxi

We also occasionally view the monthly big picture, which has had me constructive to bullish since Q4 2018 due to the post-2008 uptrend (higher highs & higher lows), thick long-term support area and more recently, the upturn from it.

fxi

Chinese stocks were absolutely woodshedded on a combination of slowing economic numbers and the bull rampaging in a China shop. It seemed like a setup.

I continue to be constructive here, obviously. As such, I continue to be open to the various resources trades that could tag along. Speaking of which, I wonder how Doctor Copper is doing of late?

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