ETF CORNER

EDZ,EDC : Triple Emerging Mania !!

Haven't done any "mirror chart" in a while, so there ya' go ! Since the low of March 2009 these triple ETF's have gone wild ! EDZ (Triple Short Emerging markets) in the oblivion, and EDC (Triple long Emerging Markets) through the roof ! By the way, I often hear that triple leveraged ETF's are "only" for short term trades and that you must never hold these instruments for the longer run (several months). The truth is: EDC has rallied from $24 in March until $145 in October (7 months) ! Of course, trees don't grow to the sky and this rally in EDC is getting long in the tooth,that it why you should become extremely vigilant about a probable huge reversals in EDC (to the downside) and EDZ (to the upside) in coming weeks. I am warning you that if a downside reversal were to occur in EDC, the gains of the past few months will be gone in a matter of a week : Abracadabra !!

EDZ & EUO : Lost in the battle !!

I am stopped out of EDZ (1% of portfolio) and EUO (2% of portfolio) . These are the first two casualties of getting on the short side a bit too early. That was a risk I was willing to take ! May their soul rest in peace ! Here is a video dedicated especially for them :

EDZ : Bought EDZ @ $9.35 Stop Loss $7.5 (1% of Portfolio)

FXI : The Bull Market in China is over !

In case you've missed it, FXI (China ETF) has topped at the end of July 2009 a little below $44 which represents a rise of over 100% ! China has bottomed in late 2008 earlier than the US Indicies did ! Now the opposite is occuring : China is topping out,and the US Indicies (Dow,Nasdaq,SP500) will follow suit ! My prediction is that FXI will retrace 50% of this whole move up before the end of the year ! I have highlited the downside risk in red ! My next target for FXI remains $32 (50% ret level) which  also coicindes with the longer term support S1! You can either short FXI,or buy double short FXP(Double short FXI) or for the traders with "cojones" buy EDZ(Emerging Markets triple short) which also is inversly "correlated" with FXI.