Thursday, March 4, 2010
FXI has been pulling back over the past two days and so it is expected that the chinese stocks especially the smaller cap ones will likely do the same. However, I am not liking the early action in YUII at all. YUII had a 5%+ down day yesterday which is not such a big deal. Today, however, it has already been down over 5% since the start of trading this morning. This sort of price action even for a smaller cap, thinly traded stock is not charateristic of a leader on no news. So I am beginning to get a little uncomfortable with YUII. I have tightened my stop on YUII to the low of today. My reasoning is this; if YUII is really going to head higher it should really bounce here and close near the highs of today as opposed to sell off further. Therefore, if it sells off further I want to be out!