Friday, November 15, 2013

Today's China move, and how Wall Street Whitey still has no clue what he's doing

So apparently the details of the Third Plenum meeting leaked out on Weibo or something, and now China is on a tear:

FXI is what stupid white people from Wall Street buy when they want to play China. I say this because it's nothing but an ETF of corrupt and inefficient state-owned garbage. They've bought $700M of this corrupt and inefficient state-owned garbage today.

What about other China plays?

Only about $300K of the China all-cap has been bought. (Nice breakout and MACD btw.)

And only about $600K of the Guggenheim China tech has been bought.

So Wall Street Whitey is playing China wrong.

I mean, if Jim O'Neill, who invented the "BRICS" term that these guys love, now says that "old China is dead and new China is the shit", then you shouldn't be buying FXI, now, should you? You should be buying "new China".

And, of course, just two days ago everyone was "sell China" because the initial communique didn't wet their panties. What a bunch of fucking lemmings.

Now, here's a thing. If you're a Wall Street Whitey, ignorant of China, ignorant of their economy, yeah you can buy FXI; but eventually you're going to realize that the central theme of the Third Plenum is change, and thus you should change your China focus.

So you should probably look into China tech.

But here's another thing:

If the Plenum is all about restructuring the Chinese economy to ensure continued wealth creation in China, then why aren't you buying the yellow metal? China's the largest consumer of the yellow metal right now; do you think the Plenum was all about stopping purchases of the yellow metal?

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