Thursday, November 1, 2007

What’s in the FXI?

Now that the iShares FTSE/Xinhua China 25 Index (ticker FXI) is regularly trading 5 million or so shares per day, it would be fairly easy for a trader to make a living trading just this one basket of China stocks. It has volatility, it has options (check out the new Morningstar options data if you haven’t already), and it will soon have a 2x inverse ETF (ticker FXP) if you want to play the other side at twice the speed.

But what is in this index? Note that the China internet stocks (BIDU, FMCN, SOHU, SINA, etc.) and the China solar stocks (LDK, JASO, TSL, YGE, etc.), both recent market darlings, are conspicuously absent from the list. I have included an October 31, 2007 snapshot of the components of the FXI, with all quotes from the Hong Kong Stock Exchange:


Ten companies included in the FXI are also traded on the NYSE with ADRs. For easy reference I offer links to a Yahoo Finance version of that list in an intra-day format and also in the more detailed summary format. At the moment, all ten companies on this list are trading down 2-6% for the day, while the FXI is down 3.4% after hitting a new high of 219.56 during yesterday’s trading session.

When the FXP arrives, I will probably give it a test drive, but not until there is more convincing evidence that the FXI has put in at least a short-term top. At that point, the volume in the FXP may also provide some interesting clues about investor sentiment, specifically the breadth and depth of concern about a bubble in the Chinese stock market. For now at least, there is no reason to believe that the China trend is going to end soon and the best place continues to be on the long side.

16 comments:

Anonymous said...

Hello Bill,

A few posts below you replied to my question about the intraday VIX high at 24.15 exactly matching that of 10-19's VIX as being significant or not. Thank you for sharing your thoughts.

Another observation about yesterday's 11-01 selloff has to do with the degree of change in the VIX. One rule I use is that when the Volatity Index (VIX) rises by 24% or more from the previous day,.. this usually indicates a strongly oversold market and leads to a near term rally.

On Fri 10-19 the VIX was up by 24% from the previous day's close which was followed by a $3 upward move in the SPY on the following Monday and Tuesday.

Note that yesterday on 11-01, the VIX rose 25.36% to close at 23.21. Again, we have a rise in excess of 24%,..this should be a BUY signal.

Just wanted to share this with you.
Appreciate any thoughts you have.

Best Regards, Jim P.

Elena Koneti said...

Historical Society of Saratoga Springs Web Development Ludhiana Egberto believes tolerance is essential and that political involvement should be a requirement for citizenship. He believes that we must get away from the current policies that reward those who simply move money/capital and produce nothing tangible for our society and that if this is not done, we will become the same as many oligarchic societies where a few are able to accumulate wealth while the rest are left out because it is mathematically impossible to catch up.

Anonymous said...

Yesterday, while I was at work, my sister stole my apple ipad
and tested to see if it can survive a thirty foot drop, just so she
can be a youtube sensation. My apple ipad is now broken and she
has 83 views. I know this is totally off topic
but I had to share it with someone!

Feel free to visit my weblog; "Los Angeles"

Anonymous said...

Undeniably believe that which you said. Your favorite justification appeared to be on the net
the simplest thing to be aware of. I say to you, I certainly get irked while people consider worries that they plainly
do not know about. You managed to hit the nail upon the top as well as defined out the
whole thing without having side-effects ,
people could take a signal. Will probably be back to get more.
Thanks

my website Juegos Online Gratis

Anonymous said...

This post is priceless. How can I find out more?

Also visit my web page jocuri online 3d strategie

Anonymous said...

Wow, this piece of writing is nice, my younger sister is analyzing such things, so I am going to inform her.


Feel free to surf to my blog post Juegos Online

Anonymous said...

It's awesome to go to see this web site and reading the views of all mates regarding this post, while I am also eager of getting knowledge.

Also visit my web-site - jocuri pentru copii online gratis

Anonymous said...

Can you tell us more about this? I'd care to find out more details.

My site - bancuri tari rau

Anonymous said...

I'm not sure why but this web site is loading incredibly slow for me. Is anyone else having this problem or is it a problem on my end? I'll check back
later and see if the problem still exists.

Take a look at my homepage: bancuri de ras

Anonymous said...

Hello! This is my 1st comment here so I just
wanted to give a quick shout out and tell you I genuinely enjoy reading your articles.
Can you suggest any other blogs/websites/forums that cover the
same topics? Thanks a lot!

Here is my web page - bancuri cu mosi

Anonymous said...

For newest news you have to visit world-wide-web and on internet I found this web site as a
most excellent web site for newest updates.

my blog post jocuri online puzzle

Anonymous said...

It's very straightforward to find out any topic on web as compared to textbooks, as I found this piece of writing at this site.

Also visit my blog - Juegos Online

Anonymous said...

Whoa! This blog looks exactly like my old one! It's on a totally different subject but it has pretty much the same layout and design. Superb choice of colors!

Here is my site :: jocuri gratis masini

Anonymous said...

Karen Millen Sale Well, the time is right for all those ladies to adopt more and more multidimensional see. Precisely why are we all girls so faithfully on ourself in relation to entire body image? We've revealed that we have been trickier on ourself compared to we should instead possibly be to draw in adult men. For the reason that we're evaluating yourself to the photos we view in media. We should stop worrying much with regards to seems to be, and initiate residing! In the end, the bulk of the appearance is determined by simply genetic makeup and cannot possibly be changed. Why be worried about might know about can't modify? We should get back in that self-love that's in relation to the sweetness in addition to natural beauty on the system, rather than on which adult males or others might imagine folks.
[url=http://www.wimac.co.uk/partners]Karen Millen Dresses[/url] If your date around town indicates evening meal within an ultra-fancy bistro, take a look at any bustier tulle attire using caviar beading. This kind of wide lace wedding dress is definitely properly best for feminine stars including Taylor Fast in addition to Kirsten Tony, yet it will seem just as great giving you. You'll be certain to turn heads in this particular green tea time-span attire, showcasing tasteful caviar beading along the breast as well as the ankle rehab ebook. Any strapless bodice can be accented together with ruching for the lovely empire middle, that slims and also hugs all shapes along with shapes.
[url=http://birkenstockshop.tumblr.com/]Birkenstock Sandals[/url] I am seeking a dressy/formal-ish costume to make use of to DH's business celebration inside Economy is shown for developing a Very difficult moment. Recently, We believed it was dressy-ish, so, My partner and i used a pleasant prime and also a prolonged, african american (hat) skirt. Ium. Are unsuccessful. The dog owner seemed to be presently there with this GORGEOUS floors duration range which have a plunging neck and also a skirt in which swirled round her each and every time the woman relocated. My spouse and i sensed and so out of place (and i also believed vulnerable planning anyways because social gathering is Jan each and every year and I ended up being thanks with January together with DD [read: I used to be large and also irritated.). I was on your own presently there using something are less costly as compared to $200-500 (not to say beneath $25).

Anonymous said...

A real yoke of shoes, dialect mayhap not unprejudiced all round the most gorgeous, not high-priced, nor is the brand moniker, nevertheless can swallow you to peregrination the terra, Christian Louboutin Shoes
just you can benefit from the pleasure shoes won't occasionally, perchance desired,nonetheless the injured indeed.Asics Shoes Australia
A remarkably plight you last will and testament compel ought to encountered, walked here difficult the showcases in countless unique shoes manifestly dazzling, oh dear of determination. Buy figure is most desirable truly isn't beautiful, like too costly, comfortable look in view of the fad, get good-looking persons who cogitate on old-fashioned ... putrefy elsewhere to be line proud of unreservedly difficult. Pick select, in the long run opt appropriate for twosome, clothing last week only to be aware of foot show, or not a in the capacity of geared to their clothes,Christian Louboutin Sale
the reactionary approach to carry out this time? To deliver up'd rather raw to begin to wear?

Anonymous said...

Muсh agгеed. Anytime I go on %source_url&%, I
come acгoss a website that is іnsіghtful anԁ challenging.
. It's never a bad idea to connect with the ideas and material of other writers and link to other sites.

My web site; défi

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2013 Bill Luby. All rights reserved.
 
Web Analytics