EFUT

I finally sold EFUT at $17.24 today. I'm a bit disappointing about the pos, not just due to the massive 35% loss, it's also the fact that I did not spot the market was going to retreat by a lot. But since I was getting in EFUT at the wrong time by using daily graph, if I changed to use weekly graph at least my loss should much smaller. Anyway, this pos originally was more like a pure technical bet than quantitative analysis, I accepted the loss and learn from it.

Surprisingly in such a down day my SVA moved up instead of down, it showed some strength to hold above the 20-day EMA. Now using both daily and weekly graphs, it showed 20-period > 50-period > 100-period > 200-period. Looking backward further enough, $7 is more or less the most critical level as it's the historical high (base on closing price, not intraday).

Market is losing steam in here, even strong stocks like GOOG, BIDU, AAPL and RIMM drop like crazy in a day. Yes they rebounced a bit but if CSCO said they see slow down due to lower spending from the financial sectors, then the ripple effect may spread to other tech stocks.

In the meantime I will erase all my previous recommendation on buying into any position, including NTES (with disappointing earnings anyway), FMCN and any others.

It is not the end of the world, but patient is a very important ingredient, I don't want to make mistake like EFUT again. When I think market starts to consolidate and calm down, I'll look to buy into higher respect name like the 4 mention above. As well, Chinese stocks I believe can still go from here as the Chinese economy may slow down but still grow. When things are settled I'll try to pick the leaders in the sectors, not just any Chinese stock.