China inflation is in, higher then expected. Look at US futures.
I still think China will be the next catalyst for a US-based correction, cause certainly it won't be Ben Parachute Shalom.
My trades in FXP (2,000 shares each time) - bought at 8.30 last year. Sold at 9.25 a fews weeks back. Bought at 9.06 again, sold at 9.50 x 1K/9.60 x 1K. Currently in for 1,000 shares at 9, was waiting to average down around 7.50 with the other 1K. Will prob not need to average down, FXP, IMO will be over 9 by Friday.
Inflation is gaining momentum and they will need to start raising rates soon, yet gradually.
As an alternative to raising the yuan, the could raise the mimimum wage helping to increase consumption in China and "forcing exporters to raise prices" to offset the additional cost. Thus, it would have an effect like raising the yuan and slowing down exports IMHO.
China's inflation data for February comes out tonight. If higher than January inflation (1.5%), it could hit the Chinese markets pretty hard as I think the fear of rising interest rates will rise to the forefront. I had my finger on the buy button for FXP, but decided I'd wait to hear the data tonight before buying.
It's either going to be that, or when US markets hit a temporary peak next week that will start the next leg up for FXP.
The real estate reality is getting its due publicity.... reminds me of US housing market in early 2006 ... all is well, don't worry, buy houses, price increase is healthy, blah blah blah... and then, crash!
It is interesting that the Chinese markets didn't rise despite 47% YoY increase in Chinese exports! What gives?