The FXI recently broke it's 200 D MA on strong volume. It is already down 15% from recent highs and may now be in a confirmed bear market.
I would like to point out to everyone that the FXI has been trending down since November and has now broken below its 200 moving average on strong volume. This could be a real sign that China is slowing. While news out of China sounds benign to me this could be a sign that things in China are worse than they appear. On the surface 10% GDP growth and some responsible tightening measures look pretty good but there are some signs that things may not be as they appear. In addition to anecdotal signs like the "empty city" in Mongolia and stories about property prices up 20% in a month we have the more tangible indicator of a falling stock market. The BDI has also been falling lately and there is the strange case of the missing oil demand. Based on China's auto sales numbers, oil demand and imports should have picked up more by now but we haven't seen the surge in demand that one would expect.
Things may not be as rosy as they appear in China's offical data.
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