China ETFs On Watch Amid Drone Debacle, Big Outflows

Analyst Paul Weisbruch of Street One Financial brings investors his daily fund flows update, which today examines continued interest in the largest tech fund, as well as some bearish action in China-focused ETFs.

The QQQ (Nasdaq 100) has pulled in more than $2.5 billion in recent sessions, as we have mentioned in these recaps lately, and we have to point out that this recent move higher follows the meeting that occurred with top Tech executives and Presidential-elect Trump. Even top component AAPL (10.66%) is challenging its October highs after stumbling through most of November and early December.

Elsewhere, China has had a hard time lately amid the “U.S. Drone” headlines as benchmark ETF FXI (iShares China) is presently trading right on its 200 day MA, its lowest level since early August of this year. We have also seen March 34 put buyers in FXI, as investors are clearly concerned about more potential downside into the Spring and into the new Presidential administration.

We are closely watching this situation, as FXI is at critical levels here on this quick slide. YANG (Direxion Daily FTSE China Bear 3X) should be watched closely here as well, given that FXI has seen substantial outflows YTD (over $1.8 billion out), including $200 million in outflows in the trailing one month period.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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