GMO is far more volatile than FXI and therefore accentuates the moves.
GMO appears to be alerting us to a downturn in the FXI.
It made sense to me to just go ahead an post this chart while I decide exactly how I would like to enter this trade.
Most likely I will buy GMO and sell short FXI, but I might only short FXI. It has also stalled from making new highs along with the US markets and could also be giving us a leading indication. The risk is small at only a few percentage points and the downside appears medium at 5% to 8%.
Cheers.
Tim 1:07PM EST January 28, 2013
Comments
osci
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vy interesting comparison. tnx forthat. since june a Little choppy so far. a see a descending triangle in GMO.
timwest
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FXI has indeed turned down as indicated by GMO's leading weakness.