Monday, January 28, 2008

Shanghai composite nailed over the weekend

The SSE Composite Index is down 7.19%. I don't know much about technical chart wizardry but looking at the 1 yr chart, even I can see the lower highs and lower lows.

But if you invested when valuations were reasonable, you are still so far from your cost basis that you have nothing to worry about.

There might be some opportunity to trade this by going long FXP (UltraShort FTSE/Xinhua China 25 ProShares) but I don't have the capital right now and the option spreads are too big.

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