From our Nov. 1 post "Chartology: A Bullish Sign for the Shanghai Composite Index (YINN, YANG)":
YINN is the Direxion China Bull triple levered ETF.The index was at 2,104.43 that day and didn't bottom until Dec. 3 at 1,959.77.
It's more dangerous, in the wrong hands, than weaponized anthrax.
I feel strangely attracted to it.
The writer of the below piece prefers the un-leveraged iShares FTSE China 25 Index Fund, FXI....MORE
The 7% 32-day drop was worth 21% on the ETF's, either for or against you while the 18.2% move off the bottom has lifted YINN 55% and crushed YANG by 55%.
Anyway, Shanghai was up another 1.4% overnight and closed at 2317. The Nikkei was up 2.86% to 10,913.30.
We missed the first month of the Nikkei move but upon Prime Minister Abe's election had the sense to post "Japan's Nikkei is In the Early Stages of an Historic Move" on December 17 and "John Mauldin: This Will Be one of the Greatest Trades of My Life"
There are no triple levered Japan ETF's which is probably a good thing and, because we're a family blog (an admittedly strange fam) we don't do a lot of public posts about options on Nikkei futures or other exotica.
One very important note: these two markets are moving for different and sometimes almost opposite reasons and have to be considered separately.
The differences between the markets, economies and cultures of the two countries are stark enough that some smart people are talking about it all ending up in a shooting war.
We have some ideas on how to trade that too, more later.
Previously:
Nov 18
Bank of Japan Might Become the First Central Bank in the World to Introduce NGDP Targeting
Dec 5
Dramatic Countertrend Rally in Shanghai
Jan 3
Unconventional Measures: "Japan plans 'nationalisation' of factories to save industry"
Jan 10
With the Shanghai Composite up 16.5% From the Lows, How High Can it Fly
Jan 14
Shanghai, Nikkei: Sweet Moves
