Double short China ETF

[cgtrader]

Proshares Trust
Ultrashort FTSE/Xinhua China

FXP-AMEX

Any thoughts on the possibilities of a CHINA BUBBLE?

Pork prices up 55% yoy, 3 people died last week in a stampede for cooking oil!

 

[makloda]

I'd only risk shorting once the China charts have clearly rolled over, made a series of lower highs and momentum turned clearly negative. Otherwise the risk/reward ratio is too high (for my taste).

 

[stock_trad3r]

That etf will converge to zero like 1/e^x

 

[gnome]

Quote from makloda:

I'd only risk shorting once the China charts have clearly rolled over, made a series of lower highs and momentum turned clearly negative. Otherwise the risk/reward ratio is too high (for my taste).

What are you, some kind of CHICKEN?

FXP started trading only 5 days ago. It has already rallied AND dropped about 25%. Can't you just smell the opportunities?

 

[makloda]

Quote from gnome:
What are you, some kind of CHICKEN?

FXP dropped about 25% in only 2 days. Can't you just smell the opportunities?

Nope, big volatility and large % moves don't positively correlate with good risk/reward setups for my discipline.

 

[gnome]

Quote from makloda:

Nope, big volatility and large % moves don't positively correlate with good risk/reward setups for my discipline.

Yeah, but just think about how FAST you could get rich by nailin' them swings. You a TRADER or just some kind of pussy?..

 

[1flyfisher]

Quote from makloda:

I'd only risk shorting once the China charts have clearly rolled over, made a series of lower highs and momentum turned clearly negative. Otherwise the risk/reward ratio is too high (for my taste).

Exactly right.

Short China Stocks?
Why do people continuously try and pick tops or bottoms?
It is a sure fire way to lose money$$$.

 

[Ivanovich]

Quote from 1flyfisher:

Exactly right.

Short China Stocks?
Why do people continuously try and pick tops or bottoms?
It is a sure fire way to lose money$$$.

They do it for the same reason casinos are so popular.

 

[JSSPMK]

Quote from cgtrader:

Proshares Trust
Ultrashort FTSE/Xinhua China

FXP-AMEX

Any thoughts on the possibilities of a CHINA BUBBLE?

Pork prices up 55% yoy, 3 people died last week in a stampede for cooking oil!

The sharper the climb the more intense the fall, last 2 months have been outrageous, just 2 months!

Anyway, there is a bearish divergence on HSI daily chart, the way I calculate divergence based retracements we are looking at -25% as of todays value. definetly a lot of vola out there, obviously not for Ivan's balls.

 

[cgtrader]

$3.00 spread right now

Anyone follow this FXP and know the best time to get a tighter spread?

My guess would be in the early morning trading...