FXI and FXP are two assets I have been watching because they tend to move with the US markets, yet provide some diversification/rotation.
As you know I think the Nikkei 225 is due for a pretty significant correction, the market's behavior on last Sunday's GDP/recession, was not bullish and it has not been bullish since.
This is one of several bearish Nikkei 225 futures macro trends- 4 hour...
This is the 30 min, on the GDP Sunday night on the Nikkei 225 -3% move, we called for a dead cat bounce as even the move down was too parabolic, that dead cat bounce is exactly what we got last week in to negative divergences, only the PBoC news rescued the Nikkei 225 futures from a decline that was already under way, but as I said last week, with the Chine rate cut being liquidity neutral, even according to the PBoC, it was a headline scanning algos dream, but otherwise a tempest in a tea pot. Chinese central planning is not short term like US, it tends to be a decade or more out.
The point is the charts as the dead cat wrapped up and since the PBoC
The 15 min chart as well, I'll try to cover currencies in an additional post.
And the 7 min trend...
FXI shows a positive like the US averages at the October lows (white and a similar negative recently on this long/strong 60 min chart.
The same is true of the 30 min FXI (China FTSE 25 long) as well as today specifically as Chinese markets are having their first chance to react to PBoC as it came after their close Friday, a large negative on the gap.
15 min FXI
10 min FXI
2 min (timing timeframe) FXI. I would usually go short FXI Chine FTSE 25, however the inverse ETF, FXP-has 2x leverage, short FTSE 25, thus I like FXP long (which gives me 2x leverage short FXI).
And FXP's timing-2 min chart leading positive vs FXI's timing 2 min chart leading negative.
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