The previous RSI(2) picks have a 50% success rate. NTES is down ~5% from when it was profiled. However, ECA is consolidating beautifully along the 50 day average and looks poised to move again.
GFA, the latest RSI(2) < 2 pick, is interesting because it has a catalyst, as well as being oversold near trendline support. The catalyst is an IBD article, published today. Lower Mortgage Rates Help Fuel Brazilian Builder’s Growth.
The chart is also interesting as it shows the descent slowing near the 50 day average and a trendline.
 If I were to take this signal, I would want to take profits around $38.00 and would want a stop around $32.40. Watch the bearish divergence in the MACD and do not ignore the failure at the 50 day average.
 Ideally, the catalyst will make this bounce firmly, and none of the above will matter, except for taking profits.
AÂ more conservative way to play this would be to wait for a confirmation day, or wait until the Stochastics give a buy signal.
Wood: China looks poised to rip the hearts out of bears/FXP’ers … take a look at $HSI & $SSEC … particularly $SSEC
Yeah, I bought some CAF today. Check out the chart. I think we’re looking at a breakout above the downtrend line.
CAF is interesting M. Would like to see more volume there, but I know that volume is out shopping for Christmas this week.
On a side note GFA was up 3.65% today on strong volume. This gives the RSI(2) Strategy a 66% win rate, thus far.
Sold half of GFA @ $37.64, making 3.24 points.
Moved up stop on other half to entry price.