[FXI] update

The Chinese stock market has been having a pretty tough time of it of late, thus proving yet again that there really is no reliable value in company stocks.  It's for the most part a Ponzi scheme based on greater fool theory since so few pay divvies out of earnings.  While it's still up big time for the year, those getting in late are now holding an empty bag.  Yeah, just like any other Ponzi.

Well they are really panicking over there right now.  Too bad they didn't read my blog in advance because it might have helped them see it coming.  After all, back in May of this year I modeled that a monster peak had just been put in by FXI (which is the Chinese stock market ETF).  Here is the chart from that post:




Later I provided this model update which included the stretched out chart shown below:



And of course below is today's chart which is now either falling in C or 3.  I think somewhere around that lower line (a specific Fib level) the shares find some level of support so if you shorted this based on my blog, it will soon be time to cover so that you can watch to see if the next move is wave 4 or if this recent 3 wave move down is going to morph into something larger.  My primary model remains the top model above.  None of this is possible to do without Elliott waves IMO.  EW are only as correct as the practitioner and so they get a bad rap because practitioners success comes and goes in waves just like everything else in the universe.  That's why all trades must use stops.