Hello. Yesterday on Bloomberg TV or CNBC a guest was talking about China being more immune to the global economic slowdown. Here is an article about China stock market rising due to new economic data that came out Thursay:
http://www.chron.com/disp/story.mpl/ap/fn/5482567.html
There is a chance that a fed rate cut will stimulate the global economy, if only in the short term. If that is the case then I think China would yield the higher return. The FXI is an ETF that follows the Chinese market closely.
You can see a blue line around 147 designating the resistance that was broken and now price has come back down towards the resistance and closed at that area. A good swing trade might be to buy it here. You can place your stop just below the main low around 134, or might want to do a tighter stop and just test price action on the retest of this s/r level at 147. I'm already long FXI from 150, with a stop just below the low at 134. But I might move the stop a bit higher. Not sure.
Anyways, I'm not sure about this setup. If you are new to the site you should know that I'm new to trading so be careful.
Would welcome any comments about this setup. Do you think market will stay above the main low that was formed at 1/22 ahead of the Fed meeting? That is my guess. Do you think Fed will cut rates significantly and cause a rallie? I'm not sure. Do you think this trade is too risky?