Trading Strategy – iShares China Large-Cap ETF

Donald Trump, speaking from Air Force One, said Friday the U.S. is ready to slap tariffs on an additional $267 billion worth in Chinese goods.  After surging 33 percent in 2017, the iShares China Large-Cap ETF (FXI), which tracks certain Chinese stocks, fell 1.1 percent to 40.91, down more than 11 percent YTD while the S&P gained more than 7 percent over the same period.  Now the question is whether recent selloff is a pause that refreshes or it’s a beginning of a deep correction?  Below is an update look at a trade in FXI.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red. 

Chart 1.1 – iShares China Large-Cap ETF (weekly)

Our “U.S. Market Trading Map” painted FXI bars in red (sell) – see area ‘A’ in the chart.  Over the past few weeks, FXI has been basing sideways using the 50% Fibonacci retracement of the 2016 to 2018 upswing as support.  Last week’s selloff pushed the ETF below support, signify…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.


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