Friday, September 28, 2007

Xinhua China Index - Blowin' in the Wind?



The FTSE/Xinhua China 25 Index is up over 63% year-to-date and 21% month-to-date. Just as the index ascends new heights, I am seeing a disproportionate number of China ADR short setups. Where will the index head next? It is usually a very, very bad idea to fight such massive momentum. In addition, the country's long-term prospects certainly look good. That said, I have to think that the coming technical answer, my friend, is "blowin' in the wind."

The FTSE China 25 Index may be traded using the iShares 'FXI' ETF.

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