Cash Crunch in China Causes Dramatic Drop of Chinese Equities

Fidelity China Region Fund (FHKCX, last change: -3.21%)

The spike of the money market rates last week in China caused a near panic selling of equities. The selling continued today and as the result, the Fidelity China Region Fund (FHKCX, last change: -3.21%) was the weakest performing Fidelity international fund. The intensity of the selling and the extent of the drop make us believe, that an oversold rally should happen soon. Our hope is that this will stabilize the Chinese equity market and build a new base for future growth.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com

Fidelity Latin America Fund is Oversold Now and Due for a Snap Back Rally

Fidelity Latin America Fund (FLATX, last change: -2.63%)

The Fidelity Latin America Fund (FLATX, last change: -2.63%) has dropped more than 19% since its February peak and is now oversold. An oversold condition occurs when the value of an investment drops too far too fast, and it is usually followed by a rebound, which is also referred to as the snap back rally. The significance of FLATX rallying from this oversold point would be that a new support level can be established, which can lead to the consolidation of the price.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com