Chart of the Day - China stocks up over 100%

Chart of the Day

With much of the global economy under severe stress, today's chart focuses on one pocket of strength – China. In the midst of what is one of the most severe economic downturns of the past century, China's economy managed to grow by 7.9% for the year ending in Q2 2009. For some perspective, today's chart focuses on Chinese stocks and presents the current trend of the iShares FTSE/Xinhua China 25 Index (FXI). As today's chart illustrates, Chinese stocks have endured what amounts to an extremely wild ride since 2005. The FXI trended upward at an ever accelerating rate (i.e. parabolic) from 2005 to Q4 2007. As the credit bubble began to unravel, so too did Chinese stocks with the FXI trending downward at an ever accelerating rate from Q4 2007 to Q4 2008. However, Chinese stocks found their footing and have surged over 100% since their 2008 trough (8% GDP growth will do that for you) and are currently trading near the upper end of a nine-month trend channel.

Notes:
- Where's the market headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts of Chart of the Day Plus.

Rate today's Chart of the Day
Excellent 5 4 3 2 1 No good
By voting every day you help us get you the charts you want to see.

Quote of the Day
"If the business does well, the stock eventually follows." - Warren Buffet

Events of the Day
August 10, 2009 - PGA Championship begins (ends August 16th)

Mailing List Info
Chart of the Day is FREE to anyone who subscribes.
To ensure email delivery of Chart of the Day, add mailinglist@chartoftheday.com to your whitelist.

-- To subscribe, enter your email address
-- To unsubscribe, simply fill in our unsubscribe form.
-- To change your email address, first subscribe with your new email address and then unsubscribe your old email address (as described above).

Chart of the Day is provided to subscribers without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use.

Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live link to Chart of the Day at http://www.chartoftheday.com. If your site provides a list of helpful links, we would appreciate it if you added a link for Chart of the Day at http://www.chartoftheday.com. However, Chart of the Day Plus charts are to be viewed by paying Chart of the Day Plus subscribers only and may not be republished.