Emerging Markets and China 25

Both of which I'm long term bearish on. For broad market coverage I prefer to use the ETFs EDZ for emerging markets for short exposure and FXP for China 25 for short exposure. There may be some good individual stocks as well, but these, when trending will cover your bases pretty well.

Lets take a look at EEM and FXI (the long versions) on a short and longterm basis

Here's the long term view of EEM, it's a H&S top and 3C has confirmed it has broken down into distribution/short selling. The long term view is quite negative.

On an hourly 3C chart we see the last 2 accumulation zones in white, the most recent one has put in a negative divergence, I suspect the accumulation from the last round is all distributed by now.

On a 5 min chart we see a positive divergence, not out of line with the broader market and not very big, the distribution has just started on a 1 min scale so we probably have a little more upside here.

Here's the 1 min distribution mentioned above, it should show up next on the 5 min, 10 min and then 15 min charts, By the time we hit 15 min (which depends on how fast they are selling) we should be near a downside reversal.

FXI-China 25

There's 2 possible H&S tops here, I think the bigger one is valid at the red arrow.

Here on the long term chart 3C also shows distribution into this top-right at the head in fact.

Like EEM, here are the last two accumulation cycles on an hourly chart. Right now the hourly chart is in line with price.

The 10 min chart shows distribution, I'd think this is probably a reversal from the last accumulation cycle looking at the intermediate term-perhaps long term.

On the 5 min chart there's a positive divergence short term in line with what the market has been doing, the 1 min chart is still in line with price this morning so I'm not sure whether distribution of this short term up move has begun yet.

Longer term both look like excellent short positions. In the meantime, we are still inside the volatile top and there will be accumulation/distribution cycles of varying lengths, depending on how close we are to an actual break of the tops.