Weekly Average Momentum Index (AMI) Rankings of SSPP, nSSPP, SELECT, ETF can be seen in: http://yechen.pan.googlepages.com/
2008 summer Olympic games are rigorously played out in Beijing, China during these two weeks. We have seen the dazzling opening ceremony, great facilities and China's economy progress in recent years from TV broadcasting. Let's also take a look at the once mighty China index fund, FXI. The following chart shows its price movement for the past 3 years. It started out at around $20 in August 2005. The run-up for the next 2 years take it to $70, more than triple of what it started. At that time, people thought China's economy will keep growing and so was the price of FXI. However, as US economy slowed down due to burst of housing bubble, and sub-prime crisis, China's economy also followed suit. After all, US is still the driving force in the global economy landscape. FXI went down from its high of $70 in October, 2007 to $40 in March 2008 with more than 40 % loss. Currently, FXI is still in the bear territory. Its STO is below 20 and the price is still below its trend line. However, $40 seems to be the support level for FXI. It was successfully tested twice in the past few months, first in mid-March, and the second time in mid-June. We will see in the next few weeks if it can successfully test this level and reverse itself.
No comments:
Post a Comment