Nervous in Shanghai

Includes: FXI, PGJ
by: Bill Cara

Shanghai Fly checks in:

Bill, 4 days of distribution in the past 6 trading days. Huge volume, strong sectors finance and steel falling. While there are more advancers than decliners, those falling have larger market caps. Weak close today as well, caution might be needed. Half in cash by tomorrow.

Thank you, Fly.

Here are the charts for the past three months and the most recent five days. With regulations permitting margin, the Shanghai index has made an incredible move. It’s enough to get the Fly (a real trader in Shanghai) nervous.