Update on the China Trade
$FXI $KWEB
Follow up post to this one, which mentioned my allocation to FXI 0.00%↑ and KWEB 0.00%↑
If we look at the range of where FXI 0.00%↑ and KWEB 0.00%↑ went on the straight shot up that began in September, we’ve seen just a bit more than 50% retrace of the move. This is completely reasonable and not uncommon for parabolic moves.
The next step here is a move and old above the 20 day, which would be a more substantive demonstration that a longer term trend could be playing out. That’s what I’m watching for heading into next week. If it can’t, it’s a failed trade and on to the next one.