Concerned that economic growth could slow to a rate below 9% (the horror), China's plan dwarfs the initial $168 billion U.S. stimulus package of tax rebates.
The FXI was up 12.8% on Friday, which is set up to mimic just a direct 1:1 relationship with the FTSE/Xinhua China 25 Index. The FXP, the double inverse of the FXI, was down 25.6% (spot on management). One would expect the FXI to gap higher on Monday. Too bad there's not a 2X long China ETF, or emerging markets. You could short the FXP or EEV. UYM, 2X basic materials, could work. But opening gaps often fade throughout the trading day.
Sunday, November 9, 2008
China gets fiscal: $586 billion stimulus
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