China (FXI) - Analysis - Getting Stronger

AMEX:FXI   iShares China Large-Cap ETF
The so called "expert" keep reaping the same message. "We see a hard landing in China" " we expect a soft landing for China " etc, etc . What landing are they talking about ? In past 6 weeks , FXI , has gained over 12 % than the S&P 500 . BUT we are now approaching multi year resistance. We shall see if this rally is for real. If broken , expect a big move in commodities .


Channel Broken, this is great new for the Chinese economy , expected to grow at 8.9 % next year, and perhaps the world
What is also strange to see is that AA has been correlating to FXI very closely over the past few years - and then AA reported a terrible quarterly earnings and now the spread between AA and FXI is at a very wide level now. Opportunity is at hand.
Algokid timwest
Hmmm,Indeed Tim . The correlation is still very strong at around 82 %. Looking at the delta for that pair( fxi-aa) , I see that it reached it's 2 standard deviation today , I usually wait till it goes to 2.5 stdev. But I will monitor this. thanks for the idea :)