Tuesday, June 23, 2009

TAIEX Up 4% Currently

A glance at the TAIEX is showing a gain of 4.71%, as of 12:09PM, Taiwan-time.

That would give EWT an estimated boost in price of around a similar percentage (if these ETFs actually work like they should). Here's my road map for tomorrow on EWT:

With a TAIEX close of anywhere around 5% up on the day, that would put EWT very very close to the $10.15 gap fill created last Monday. EWT will gap up tomorrow, and what I will be watching for is how it responds to the gap fill level. Although unlikely, if it can take that out and proceed higher to the second gap (at $10.37), that's where I would look to start adding to my EWT puts. A $10.48 level also represents a 50% short ambush from the recent lows to the highs off of June 1, 2009. The $10.37 and $10.48 levels will be hard to reach tomorrow, but if the U.S. markets sustain a larger rally, it could boost EWT as well. In any case, watch for these levels.

As I predicted, Ma Ying Jeou's ratings have dropped, in-line with the stock market.

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