[caption id="attachment_664" align="aligncenter" width="500" caption="Morgan Stanley China A Share Fund"][/caption]
I've sold my CAF position bought at \$28.89 for \$21.69. A loss of about \$430. I placed a limit order, and only 56 of the 58 went through. I'll assume my 2 remaining shares will go through some time today (it has gone through as I'm writing this). Fee \$5.
CAF gapped open about \$2 today due to this weekend's news of China's plan for a stimulus package of about US\$586 billion. However, CAF seem to be being faded on this news. The total downtick volume looks significant.
On the other hand, FXP (UltraShort China) looks to be on the rise. A break of above \$70 would be very bullish for it.
[caption id="attachment_665" align="aligncenter" width="500" caption="UltraShort FTSE/Xinhua China 25 ProShares"][/caption]
My bullish view on China in the long term still remains strong. However, I don't think we're in a time for buy-and-hold strategy anymore. This is definitely a trader's market and I intend to put my money for swing trading opportunities. Even though I sold at a significant loss and a return of CAF to \$25 level seems likely in the short term, I believe I will lose even more in opportunity cost if my fund is tied with CAF. So I'm exiting on this weekend news and price strength.
: http://traderpau.files.wordpress.com/2008/11/2008-11-10-caf.png : http://traderpau.files.wordpress.com/2008/11/2008-11-10-fxp.png