adding FXP

In this post dated December 04 2009 we announced buying FXP, the ProShares UltraShort FTSE/Xinhua China 25 ETF. Adjusted for subsequent splits, that entry price is $37.30

We wrote : "Its downtrend does not yet appear to be over, from a technical perspective, so in case it drops significantly we're planning to add to our holdings rather than stop out. Our thinking may change on that, but for now we feel increasingly certain that a turn in the global markets is imminent."

Global markets did turn lower and just 6 weeks later FXP was 43% higher. However we're looking for even bigger gains by shorting China, so we took no action and by summer 2010 that position was in the red as markets reversed again. Shame.

The good news is that now the 2-year downtrend is finally broken for FXP (also true of BZQ, another effective short we favor), so we add to our FXP holdings and if it should close below $24 we'll sell all of our accumulated FXP holdings.

FXP closed today at $27.90

BZQ closed at $16.26


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