$FXI For 2022$FXI (iShares China Large-Cap ETF) looking like a good trade for 2022. I usually stay away from Chinese equities but with Alibaba down ~60% (almost 10% of the ETF) in the past year and their Fed indicating a looser monetary policy, it looks like a great value play to combat the recent US Fed rate hike.
$16M Darkpool print on Friday + Unusual OI for the 5/20 $40 Call. Looking for MACD to officially cross over...
FXI trade ideas
A Spectacular Dip Buy Chinese Stock Exchange Chinese #FXI Large Cap ETF ready for a dip buy around here and I will be watching for the triangle to breakout above the red line.
Here are the top 15 holding of the ETF:
Symbol Holding % Assets
3690 Meituan Class B 9.51%
700 Tencent Holdings Ltd. 9.08%
9988 Alibaba Group Holding Ltd. 7.49%
939 China Construction Bank Corporation Class H 5.92%
9618 JD.com, Inc. Class A 5.39%
2318 Ping An Insurance (Group) Company of China, Ltd. Class H 4.21%
1398 Industrial and Commercial Bank of China Limited Class H 4.11%
9888 Baidu, Inc. Class A 4.06%
2269 Wuxi Biologics (Cayman) Inc. 4.02%
1810 Xiaomi Corp. Class B 3.39%
1211 BYD Company Limited Class H 3.31%
9999 NetEase, Inc 3.29%
3968 China Merchants Bank Co., Ltd. Class H 3.05%
3988 Bank of China Limited Class H 2.69%
2382 Sunny Optical Technology (Group) Co., Ltd. 1.92%
FXI - US Dollars Accumulate China ETFThe cyclical boogeyman of Chinese stocks have come down a lot with huge gaps down on the US exchanges. But in RTH, FXI has been accumulated strongly since April 2021 (meaning Asians are selling to Americans, these ETFs more and more held in dollars instead of CNY/HKD). Buy, testing the all time highs within a few years.
Call LEAPS.
Aggregate Volume Drift using mostly 10 minute accumulation/distribution data.
China LArge Cap ETF short term boost to higher highs. FXIAppearing to be a beginning of the Y in WXY in an otherwise complex correction. This is just a result of just the same as nothing can grow exponentially, nothing will fall unstoppably without seeing some respite from time to time.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in green with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
FXI, Immediate term trade and trendSignal didn't like FXI for a long time now. I have been short. And now it seems like there will be another short opportunity??
I will be keeping an eye on this
PS. Each box span a day, and the code gives short term and long term trends as shown. the trend is shown with the color of the box. The range is calculated on a daily basis.
If you want similar ranges and trends on your ticker, feel free to contact me, I will add them to my list and provide them when the signal is interesting (for free of course)
Redd
Chinese Stocks May Be TurningThe iShares China Large-Cap ETF had a big run last year, then pulled back and consolidated for 3-4 months. Now it’s showing signs of coming back to life.
Notice how FXI held roughly $45 after forming a kicker candlestick on June 16-17. Looking back to the other lows of May 13 and March 25, we discover an inverted head and shoulders pattern.
Next, FXI squeezed along its 50-day simple moving average (SMA) for the last month. Price action the last two sessions suggests that resistance has finally been broken.
MACD has also been steadily rising since late March. Combined with the mid-May low, this has resulted in bullish divergence.
Finally, the 8-day exponential moving average (EMA) has crossed above the 21-day EMA. The 21-day EMA is also trying to get above the 50-day SMA for the first time since the crash in February. That could signal a more significant change of direction in favor of the bulls.
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Asian Bear Markets Signals Corrections in US StocksChinese stocks are entering a bear market. China's holdings are very tech-heavy and mostly internet-based. ex. Alibaba, Tencent, JD, Baidu, Weibo, IQIYI. The Chinese government has concerns over the power these large corporations can wield on their citizens leading to increased regulation. Likewise, the US Government has been closely watching their own tech giants in an effort to reduce their influence. Inflation fears have also affected Tech valuations with these being seen in both Asia and US markets. As inflation rises, nominal rates also rise increasing the discount rate for discounted cash flow valuations. Furthermore, many funds and retail traders are leveraged (margin) in the Asia markets, and once things start to unravel it usually leads to faster declines.
Tech stocks are a leading indicator of the broader market. Semi and Tech dictate the path of the economy. There is a strong positive correlation between semiconductor growth and economic expansion. The semiconductor manufacturing process is expensive and involves large amounts of capital making it more sensitive to changes in interest rates. If China's economy is headed for a downturn then, the world economies will eventually join them. China is a good leading indicator because, the issues that affect China's manufacturing will be felt by the United States, Europe. The past bear markets in China have served as a leading indicator of the direction US Tech Markets will take.
Taiwan is more heavily invested in industrials and manufacturing ex. TSM.
FXI Short Put (Wheel)Chinese large caps have tumbled over the last couple of weeks and seem to have found support on the rising trendline around $47. The FXI also has a weighted PE ratio of 12.64 which is less than half the SPY's 27. In simple words, you are getting a greater value per dollar in FXI than the SPY.
Trade Idea:
Cash-Secured Put: 45 Strike expiring 4/16 for $0.65 Credit. 75% PoP and $650 BPE for a 10% Max ROC.
Chinese Stocks Have Pulled Back HardThe run-up in U.S. bond yields has squeezed the dollar higher and dragged global stocks lower. This could be creating an opportunity in Chinese stocks.
The iShares Trust China Large-Cap ETF hit a 13-year high of $54.53 on February 17, followed by a sharp pullback in the last two weeks. A few interesting things appear on the chart.
First, FXI has returned to an upward-sloping trend line that began in late September. It’s also near the 100-day simple moving average (SMA) where prices bounced immediately before Christmas.
Next, Fibonacci shows we’ve retraced about 62 percent of the most recent leg up.
Finally, stochastics have returned to an oversold condition.
Given the sharpness of the recent drop, traders could watch for more signs of stabilization before jumping in. However, this could prove an interesting opportunity for longer-term trend followers.
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