Seeking Alpha

Jim Farrish's  Instablog

Jim Farrish
Send Message
Jim Farrish is the Founder of Money Strategies Inc, a registered investment advisory firm. He has professionally managed money for nearly 30 years. His extensive research on the markets is published daily on his proprietary site Jimsnotes.com. His primary goal is to educate people about... More
My company:
Money Strategies
My blog:
Jim's Notes
My book:
Money Rules: Rule Your Money vs. Your Money Ruling You
  • Europe, Spain and China Setting up Short Plays 0 comments
    Jan 11, 2011 9:49 AM | about stocks: IEV, EWG, EWP, FXP

    Worry over European sovereign debt puts pressure on global stocks. We talked last week about opportunities developing in specific country ETFs on the upside, but the Portugal sovereign debt news today is putting some pressure on stock prices overseas. Europe ETF IEV broke below support at $38.60 today inviting the short sellers to take advantage of the downside risk. Germany (NYSEARCA:EWG) is down 1.1% and Spain (NYSEARCA:EWP) is down 1.1% as well. The move in EWP takes out the November low as the downtrend accelerates. EWP remains a good opportunity on the downside. If the news continues to be negative relative to the sovereign debt the fund is likely to test the June low near $30.40 offering an opportunity to be short the country ETF.

    Another opportunity on the downside that could result from the debt challenges in Europe is FXP, ProShares UltraShort China 25 ETF. China is down 1.1% today as a result of the news relative to Portugal. If Spain were to follow suit on a bailout the impact to China would be worth playing the downside. Remember FXP is leveraged 200% adding risk to the play. Take that into account before investing.

    As with any investment make sure you weigh the risk relative to the potential reward. Determine your entry, exit and target prior to investing.




    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Themes: china Stocks: IEV, EWG, EWP, FXP
Back To Jim Farrish's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Gold Rally Waiting In The Wings $GLD, $GDX, $HMY http://seekingalpha.com/p/1pci7
    Apr 24, 2014
  • $IEV chart says... Not much! Uptrend off last summers low is technically in play, still unresolved sideways consolidation from ST trendline
    Apr 4, 2013
  • IGV has exerted new leadership breaking to a new 52 week high. In fact the fund broke above the September 2007 high.
    Oct 27, 2010
More »

Latest Comments


Most Commented
  1. Watching the Retail Data (3 Comments)
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.