FXI: small caps are coiling

The thesis

EM equity flows are turning, and FXI is the cleanest expression.

Small-cap breadth is basing in a way that usually precedes leadership.

What I'm watching

• EM fund flows
• the catalyst timeline
• A clean move through the level I flag below

Positioning

Long on FXI, 1-6 months horizon. Conviction: High. A risk-off turn hits small caps and EM first; defined risk.

Opinion, not investment advice. The author may or may not hold positions discussed.