[ad_1]
To receive further updates regarding this iShares China Large-Cap ETF (NYSE:FXI) trade as well as an alert when taking profits, sign up for a trial without risk of Weekly feeding options aujourd & # 39; hui.
Today, I recommend a bearish trade on the IShares China Large Cap Equity ETF (NYSE:FXI), a fund that tracks the results of an index of Chinese large-cap equities traded on the Hong Kong Stock Exchange.
We are still in the month of October very volatile and, with the mid-term elections in the United States in early November, this seems to have intensified the climate.
The stock market hates the unknown and, at present, the biggest unknown factor is the negative impact of the elections on the economy and the stock market. I certainly do not know what's going to happen in Washington, DC, but it looks like traders are taking a riskier position before the mid-point.
At the same time, China continues to play the game of trade, although reports indicate that President Trump and Chinese leader Xi Jinping are expected to meet in November. This could give rise to some kind of resolution, but Peter Navarro, Trump's chief commercial advisor, probably does not back down either.
Trump also announced that the United States would have to withdraw from the Universal Postal Union no later than January 1, 2020. Although the treaty itself concerns 192 countries, it is a Another initiative targeting China because it will send small parcels from China to the United States through the more expensive postal system.
Officially, it will take a year to withdraw from the agreement. Postal rates could be renegotiated during this period, but for now, this seems to be another sign of increasing tension between the United States and China.
If the two countries do not reach an agreement after the meeting next month, I do not think the market is better.
The Chinese market has collapsed even though it is bouncing around 3% this morning. I do not think the sale is over at this point, however, it gives us a good chance to grab these FXI put options at lower prices.
Buy to open the iShares China Large-Cap ETF (FXI) ETF on December 38 (FXI181221P00038000) for $ 1.60 or less.
Follow our Facebook page to receive each transaction of the day directly in your news feed – and join the conversation.
InvestorPlace Advisor Ken Trester t & # 39; brings Weekly feeding options, which offers you 5 new option trades and its latest trading advice every Friday. Trester has been trading options since the opening of the first stock exchanges in 1973, with a series of victories dating back to 1984, with average annual profits doubling money since 1990.
Source link
