|Yikes! Way overbought and going parabolic! Get me out!|
Sunday, April 12, 2015
Sold my China shares
I got long China at the end of 2014 and I had the China ETF (FXI) as my stock of the year. However in the last week the shares have went parabolic and are way overbought. I went ahead and sold into the strength as these kind of moves usually result in a significant pullback. The news out of China is quite frightening in that the government is encouraging stock speculation by newbies. I would rather cash in now and see what happens. I have read articles where it is highlighted that the recent "investors" are inexperienced and uneducated (greater fool theory). This is usually a recipe for a disaster. It could keep running higher but staying in now is picking up change in front of a steam roller.