Looks like China economy has bottomed up and slowly recovering. Both PMI and FXI are telling some bullish stories.
A few bullish signals on FXI chart:
- FXI has broken the resistance of $39.33.
- FXI is trading above 20D, 50D and 200D SMA.
- FXI is showing “Higher High, Higher Low” uptrend pattern.
- FXI is showing a nice Elliott Wave.
- FXI broke out from A Rising Wedge.
- Need to wait for FXI to retrace back to about $40 to test the resistance turned support level.
- $40 is an entry level for a bullish trade. (Buy on Dip on an uptrend strategy).
Top Holdings* as of 1/3/2013
|NAME||% OF FUND|
|CHINA MOBILE LTD||9.71%|
|CHINA CONSTRUCTION BANK-H||8.80%|
|IND & COMM BK OF CHINA-H||8.01%|
|BANK OF CHINA LTD-H||5.94%|
|CHINA PACIFIC INSURANCE GR-H||4.26%|
|CHINA LIFE INSURANCE CO-H||4.25%|
|PING AN INSURANCE GROUP CO-H||4.20%|
|CHINA SHENHUA ENERGY CO-H||4.07%|
|CHINA PETROLEUM & CHEMICAL-H||3.97%|
The latest published Manufacturing PMI on Dec 31 is 50.6; a consecutive 2 months expansion.
|HSBC Final Manufacturing PMI 51.5 show the similar 2 months expansion.|
|Note: PMI is economy leading indicator.|