FXI iShares CHINA ETF

Taking a look at the FXI last night I noticed that our broken trendline from mid-January is about to come back into play. What typically happens in these situations is that the security with break the trendline and then move back up underneath it in what’s called a retracement. There is still more room to move higher as you can see, but after that it’s hard resistance to break through.

This is a classic example of when you want to start selling CALLS above the market when it gets around $45-ish. When you do this you let the next move lower speed up the time decay and you get your premium a lot faster and with much less risk.