Chart of the Day - Thursday, February 20, 2025

Patrick Dunuwila
February 20, 2025

Chart of the Day


🏆 Today's Chart of the Day was shared by Jonathan Harrier (@jonathanharrier).
 

  • US Stocks pulled back today, but the China Large Cap ETF ($FXI) rose +1.9% to a four-month high. $FXI has outperformed the S&P 500 for six consecutive weeks, gaining +17.4% year-to-date, vs +4.2% for $SPY. 
     
  • Despite the recent outperformance, shorts sellers got more aggressive this week. Short interest on $FXI increased from 41.2% last week to 55.5% this week. Jonathan points out that $FXI is testing the 'Tepper Top'  from October.
     
  • Legendary investor David Tepper was ridiculed for buying China after the +20% rally in September. However, $FXI was due for a correction; it has fully recovered, and Tepper was quietly doubling down the entire time.  
     

The Takeaway: China ($FXI) has outperformed the S&P 500 for six consecutive weeks. Shorts got more aggressive this week while $FXI tests the 'Tepper Top' from October.

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