Tim Knight does something he rarely does, one chart, one trade, start to finish. It is the anatomy of his short in FXI, the ETF for large cap Chinese stocks, and the three things that drew him to it. One, a decades-long history of tops and drops, every rounded top on the chart was followed by a meaningful decline, and a new rounded top had just formed. Two, a trend line that acted as support for decades, failed, and then saw price rally right up to it and get rejected, support becoming resistance.
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Chapters
00:00 One chart, one trade today
00:40 Why FXI caught his eye
01:05 Reason one, tops and drops
01:50 A new rounded top forms
02:02 Reason two, the trend line
02:30 Support becomes resistance
02:50 Reason three, no US correlation
03:40 Overlayin...