FXP/FXI China

Last week I mentioned FXP as a long I liked, this is short the China 25 (leveraged ETF)

I'll also include FXI the long version of the ETF as confirmation, I went ahead and added FXP Friday as a long equity.

 The last few days, FXI  gapped quite high above support, I think this is the head fake move in FXI/FXP as the head fake move typically has some relation in its size vs the previous trend (since Sept.).

 FXI (long China) and FXP (short China below) are both in a flat range which is where we most often see accumulation/distribution, I like these ranges as tell-tale signs.

 FXP 60 min

 FXI, the long version is falling apart sharply on the 2 min chart as it gapped above resistance, an unreasonable gap.

 A longer 5 min chart is negative at the same place making the head fake move more probable.

 Even the mid-term 15 min chart deteriorated badly on the gap up.

 FXP, the short version (position entered late Friday) is moving up in a leading positive divergence, confirming what was seen on the FXI short term charts.


 FXP 5 min is also leading positive, also confirming what was seen on the FXI charts (the 3C signal should be the opposite of FXI).

And the longer term 15 min chart is leading positive, also confirming what is seen in FXI, that's a lot of confirmation between the two ETFs.

I continue to like FXP, especially on a head fake move with confirming 3C signals.