SOLD -58 CAF @21.69

[caption id="attachment_664" align="aligncenter" width="500" caption="Morgan Stanley China A Share Fund"][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"][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.

[Morgan Stanley China A Share Fund]: http://traderpau.files.wordpress.com/2008/11/2008-11-10-caf.png [UltraShort FTSE/Xinhua China 25 ProShares]: http://traderpau.files.wordpress.com/2008/11/2008-11-10-fxp.png

BOUGHT +83 CAF @24.02

[caption id="attachment_226" align="aligncenter" width="500" caption="Morgan Stanley China"][Morgan Stanley China][][/caption]

Upside: News #1:Central banks act to calm markets (financials go up). News #2: China steps in to prop up stocks (China go up). And CAF chart looks good.

Resistance: \$25 from 2 days ago, then \$30.

Downside: It's a financial! And investment bank at that! No telling what mass panic could cause...

Support: \$22.25 from 2006.

Bottom Line: With the mass fear in Financials (doom's day-like media headlines here in Hong Kong), I believe we're near for a short squeeze rally in the market.

Target: Some kind of big spike. I'll sell into strength. Or \$30. I do want to hold this for a few weeks if possible.

Stop: 2 day consecutive close below \$22 and fade out of buy signals. Gotta watch this one close.

Fee: \$5.00

[Morgan Stanley China]: http://traderpau.files.wordpress.com/2008/09/2008-09-18-caf.png