[FXI] update

In the backlink I showed a topping model which expects significant downside over the coming quarters.  Today's zoomed in update shows that since then, when the price was 49.64, the shares have tumbled more than 10% down to $45.81.

However, nothing goes straight up or straight down.  These shares have now completed the throw under of a falling wedge and so I expect an 8-10% rally from here at the very least.  If that happens in a 3 wave move then look out below because the next move after that will be a big collapse below both rails of the longer term rising wedge as shown.  That negative outcome continues to be my primary model. 


China will likely lead the US markets lower IMO.  The marginal players in the funny money game will get hurt the first and the worst.  Until the world calls bullshit on dollar/Mammon money hegemony, the US will always get a better deal than it deserves.  China is the perfect example of how fake money transfers wealth from workers to elite/overlords/con men.  They do most of the work, we get most of the benefit. 

Someday this will stop, China will stop giving its products away at 25% of what they cost to make in the US and American buying power will collapse.  IMO, the effective enslavement of Chinese labor through the use of fake money is the only thing that has kept America's head above water for the past 10+ years.  We just don't make the cost effective products that we want to consume.  We are completely dependent on ever-less-friendly Chinese to do this.  It's been a good ride for liberal  American who have, in aggregate, been able to consume at a level far above their production but all good things (and con games) must come to an end and no, it won't be different this time.  Make hay while the sun shines folks.  Dark clouds are forming on the horizon.

Note to Chinese people who might be able to read this through the Great Firewall of China: do not blame Americans alone for this.  Your own leadership made a deal with Nixon to slave you out to us in exchange for access to US high tech which you have become very good at producing.  If you want to be mad at someone that all your hard work does not lead to a very good life, blame the fake money called Yuan/Renmimbi.  If the US had to pay in gold or silver for the electronics and other products that you produce for us, your country would be very wealthy indeed.  It is only through the acceptance and use of fake money that you can be economically enslaved.  Please try to remember this the next time someone tells you that you should go to war with the US for any reason.  Tell them to go to Hell on your side and I will be telling them to go to Hell on my side.  Perhaps if enough of us send the message loud enough it will be heard.