The Chinese markets have been lagging lately and have been a great short play.  FXI, which is an ETF with a basket of 25 top Chinese companies, has been keeping its downward trend the last few weeks while the U.S. market (SPY) has been continuing upward.  FXI skyrocketed up 92.5% from its March low ($22.69) to its beginning of August high ($43.67).  During this same time the SPY has only gone up 55.5%, which is ridiculously good as well  but when you compare it to the FXI return the grass definitely looks greener.

Getting back to the latest trends check out the following charts…….  (full post)

The following is a chart of the FXI over the past 6 weeks with the down trend holding strong.  (Click images for bigger picture)

Next up is a chart of the SPY over the same time period showing how it has been performing better, but has been shaky as of late and is testing going into a downtrend.

Overall the FXI has been a good short so far and it remains to be seen if it will turn into a long term downtrend retracement.   The SPY has been showing signs of shakiness and is under watch after breaking the trendline today, but don’t want to get sucked into another head fake.