One of our core holdings- FXI- is coming down to an attractive buy point. China has slowed but is showing positive data points for bottoming out.
As Jim Cramer put it: ” There have been concerns of a hard landing in China. We’ve argued that China is undergoing a soft landing and that recent data points (ISM, PMI, retail sales, exports, M2) suggest a recovery is underway. We also strongly believe the new leadership in China will continue on a similar path in terms of easy monetary actions going forward (we think further liquidity injections and targeting stimulus programs as well as easing of banking lending policies). In other words, we know China has been soft but we believe this is well known, reflected in stock’s shares”.
Here is the chart of China’s most popular etf- FXI
Chart is showing that we are approaching the 200 (black line) and the 50 (green line). Usually when a cross of moving averages occur, big moves happen. This is a good place to buy FXI and put the stop-loss in below 36 (today’s intraday low of 35.65). Happy trading.
