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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (28060)	3/8/2005 8:36:08 AM
From: orkrious	Read Replies (2) \| Respond to of 110194

My inclination now is try and develop some kind of good Asia and China short. Any ideas? this probably isn't what you are looking for, but I think the semis fit the bill. w/o asia, semi demand would be completely in the shitter, and the semi stocks have been run up as if 1999 is just around the corner.

To: russwinter who wrote (28060)	3/8/2005 8:39:04 AM
From: orkrious	Read Replies (1) \| Respond to of 110194

from streetinsight Sometime during the evening -- probably around 3 a.m. -- in another restless night of sleep, Bloomberg reported that Volkswagen lowered guidance owing to weak China sales and raw materials cost pressures.

To: russwinter who wrote (28060)	3/8/2005 8:44:19 AM
From: Carlos Blanco	Read Replies (2) \| Respond to of 110194

My inclination now is try and develop some kind of good Asia and China short. Any ideas? CHN can't be shorted. FXI not only allows shorting but also has options (not sure how liquid): Trading on the New York Stock Exchange [NYSE] under the ticker symbol FXI, the iShares FTSE/Xinhua China 25 Index Fund is an exchange-traded fund [ETF] that holds the same twenty-five stocks as the FTSE/Xinhua China 25 Index. The China 25 Index, in turn, is a benchmark developed jointly by the firm FTSE and the Xinhua Financial Network. It was created to track the performance of China’s leading companies. Since the FXI includes many of the largest stocks that trade on the Chinese stock markets, it includes both H and Red Chip shares. Red chip shares are stocks of Hong Kong incorporated companies that trade on the Hong Kong Stock Exchange. Meanwhile, H shares are companies incorporated in the People’s Republic of China [PRC] and selected by the Chinese government for listing on the Hong Kong Stock Exchange. Red and H shares are quoted in Hong Kong dollars. In terms of sectors, oil and gas, telecommunications, and transport companies dominate the FXI. However, the fund also includes banks, steel, electric, mining, auto, life insurance, chemical, and information technology companies. The list includes names like Aluminum Company of China, China Life Insurance, China Telecom, China Mobile, Petrochina, and BOC Hong Kong. In short, the FXI represents a well diversified portfolio of Chinese companies. In conclusion, strategists looking for a vehicle for playing the Chinese stock market might consider the FXI. It is growing in popularity and therefore becoming more liquid. Shares of the fund can be bought or sold short for bullish or bearish trades. Options trades such as spreads and straddles are also possible. Keep in mind that, unlike a cash index, this is an ETF and therefore the fund settles for shares (not cash). At the same time, the options settle American-style, which means that these options can be exercised at any time prior to expiration. In contrast, most cash indices settle European-style and therefore exercise and assignment is only possible on expiration day.