Pumping the Brakes on China

$FXI

I’ve done several posts around entering China long trades over the past year. It’s been a good trade at times, but has pulled back quite a bit since hitting a 52 week high in mid March.

I’ve seen some posts around the recent relative strength of China relative to US, but I’m biting on sustainability in that trade.

Monthly chart of FXI 0.00%↑ above shows a pretty nasty monthly candle forming. albeit with 2 weeks of data still to come. The FXI 0.00%↑ got up to its AVWAP from inception and drew back. We can also see the ample overhead supply. FXI 0.00%↑ is a no-touch for me below that AVWAP. The rhetoric around US/China relations makes the long prospects even murkier, particularly given the presidents ability to move markets at a moments notice.