Abe Mishima

When and Where to Go in China

I'll step into FXI when FXP goes over 100. Neither FXI or FXP holds its gains very long, but since FXP is a bit dicier, getting in FXI when FXP is bumping the top of its channel is the prudent thing to do. Why am I using a reverse ETF instead of looking at the core ETF? Because I trust neither, and see FXP as the tail that wags the dog. Heavy volume in that ETF invariably affects FXI. Funny how activities we engage in here in the US affect an index based on Chinese stocks. I am aware of the adr's traded on US exchanges, but they represent only a fraction of the shares in each of the corresponding PRC companies. Again, the tail wags the dog here too. Talk about magnification! Good luck to any investors in these etf's or adr's. You have a tiger by the tail.