FXI Trade Follow Up-

We have an open FXI equity long position so I'm following up on that as this may be a decent add to area. Calls in FXI which were opened on 4/25, Closed FXP trading position long, opened regular size FXI trading position long & FXI Calls were closed on 4/29 I Am Going to Take FXI May $34 Calls Off the Table as I saw signals for a pullback/gap fill and here's the follow up for that 53% gain this week FXI Follow Up.

 On a daily FXI chart the white arrow is where both a call position and an equity long were entered, at the red arrow the call position was closed for a +53% gain and the equity long was left in place as an open long trading position as I didn't expect a sever pullback, but enough to warrant closing the calls.

The real, longer term trade I like is FXP, UltraShort China 25 rather than FXI which is UltraLong China 25, here's why as I think FXP has some excellent upside.

 60 min FXP China 25 UltraShort leading positive. However, as we were long FXP some signals came across the charts and we switched trades on 4/25/2014... Closed FXP trading position long, opened regular size FXI trading position long & FXI Calls

This is the FXP 30 min chart going from in line to a negative divegrence and that's when we closed FXP and entered FXI long. I do intend on re-entering FXP as a longer trend trade, but it needs to finish its correction and set up our entry, until then, FXI looks pretty good.

 This is the FXI 15 min chart,  you can see the clear positive divegrence forming and on the 25th at FXI's lows and FXP's reaction highs, we flipped trades.

This leading positive 15 min chart should still have significant upside and as such I think this is a decent area to consider FXI long if you haven't before or as an add-to area for existing FXI longs. I do not like this area or set up for a new call position, I'd want to see a sharp move lower with strong accumulation to enter a call.


 The FXI 5 min chart shows the highs and no 3C confirmation which is why the call position was closed on the 29th...I Am Going to Take FXI May $34 Calls Off the Table again, for a 53+% gain for a few days.

The 1 min FXI looks like the pullback/consolidation is nearing its end as you can see a relative divergence transform in to a stronger leading positive.

 The 2 min chart also shows then on-confirmation at the 29th highs and the relative positive and leading positive since the pullback from the 29th's highs which basically filled a gap.

The 3 min chart shows the same thing so we have a trend that is migrating through the timeframes, remember FXI is not the prize, but it's the trade for the time being until FXP sets back up.

Again, FXI's 5 min chart shows the non confirmation of the highs of the 29th, and a steady positive divegrence on the pullback from those highs.

I'm not moving anything as I already have an FXI long equity position, but you may want to consider FXI for some diversification (China) and as a reminder, although I think there's a time and place for options and they may very well work fine here, this is not the kind of options trade set up that I prefer, it just doesn't have enough entry edge for me.