A little housekeeping

In this day and age of twittersphere and blogosphere, where many traders are living in a fantasy world, it is important that I remain honest to myself and my followers.

I have been bearish China all year long. But I had a plan which I adopted here a few weeks ago, and even Tom DeMark told me that I should, that if SHCOMP weekly chart has two consecutive closes above 2K - the demarkation line (misspelled intentionally) - it would be time to cover shorts in FXI, and look for longs on pullbacks. Well, SHCOMP is screaming above 2100 tonight. Yes, on very long-term charts I showed here earlier, this latest rally from below 2K looks like a blip. But one should not forget that we do not live in imaginary world, and real money is on the line. Nobody can assure that SHCOMP will not continue to go higher, and wipe out a year-long of bears' profits in the process. Unless you are Jim Chanos (who is a big China bear), and you can withstand another 200 points of straight up action, you have to cover this FXI short.

I brought a knife to a gunfight. It's time for China bears to lay their picks and shovels down, and wave a white flag in front of bulls' heavy artillery. No matter what and who is behind the move - respect the price, put down the farming tools, and surrender. Live to fight another day.

Note to self: cancel Kung Fu lessons.

Update on Dec 14 @ 12:15 pm

Here is everything I talked about in a 3-minute sound bite. But no matter who is doing the buying, you have to get the heck out of the way.