Talk in the chat room today mentioned FXI’s possible upswing so this seemed like a good time to check the Lazy Man Prognosticator forecast. These are 4 hour bars and FXI is the shaded area. By now you know that the technical panel only applies to the focus ETF . . FXI. There are a few items of note: On the 14th virtually all technical signals went positive and its hard to fight this type of momentum. Confirming a bullish forecast is the uptrend of the VWAP and FXI’s close proximity to it. MS (Moneystream) is also bulllish and when considered as a confirming signal, is typically highly reliable. FXI was closely on track with EEM until Dec 2010 when FXI faltered and EEM surged. We’re likely witnessing some mean reversion of the EEM/FXI pair to parity and if that’s the case a Long FXI position is the path of least resistance (at least for the short term).
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