One trade I'm considering is entering China on the short side. We've come off some very battered levels in a very short amount of time:
Bulls are very much swimming upstream on this one; this index has climbed nearly 40% in just a few days – – the kind of action you'd expect to see in a countertrend bear market rally. Here's another view with the FXI:
As you can see, we're getting close to the 50 day moving average for the first time in a while. The scary thing is how wild the FXP, which is the ultrabearish ETF for China, is behaving. This has plunged nearly 80% (!) just since the highs of last month:
I think I'm going to wait for a little push higher in the markets before I get serious about this. All the same – – food for thought.
