FXI Follow Up

First off, the trade I'm really interested in and was in until we saw a recent pullback coming Friday April 25th Closed FXP trading position long, opened regular size FXI trading position long & FXI Calls , that's when we switched to the inverse of FXP, FXI (FTSE/Xinhua China 25) whereas FXP is the Ultrashort.

I think FXI as a equity position has more upside and FXP more pullback...

 FXP looking like a very probable pullback last Friday as well as yesterday, however I'll be looking for a new long entry here as the larger picture is a big Channel Buster.

This is FXI's 1 min intraday chart from this morning, with options the value can erode quickly when price stagnates, it looked to me that the early lack of confirmation would cause some stagnation in price and I didn't want to lose a quick 50%-ish gain in such a short period (Friday the position was entered).

The 2 min trend looks great still and I think as I said, FXI has more upside to go and that's why I left the equity long position in place.

 This is the 60 min chart which suggests FXI has quite a bit of decent upside left in it, I only added the calls to give FXI a little "beta boost".

Here's the 15 min chart still looking great.

If there''s going to be any deterioration as distribution is most often carried out in to higher prices, that 1 min chart above will have to migrate all the way out to the 60 min. so we may have more opportunities to open more calls as there should be some pullbacks, although these overseas influenced assets always tend to be very gappy and the same "gap fill" rules don't apply.

Here's the P/L for the May Calls.

At a cost basis of $.97 and a fill of $1.49, the gain was 53.6%, not bad for a couple of days.