Interesting, there was an out-of-the-money EEM March 2011 put spread yesterday ($46-$41) which appears to be active again today. And there is activity in EEM December 2010 puts today less than open interest (10,000+ contracts moved on both the $46 and $44 puts in the morning). Not sure about the ticks. EWH (Hong Kong ETF) puts were active yesterday as well.
Goldman Sachs told investors in a note to close out long China and EEM/SPX trades. I see that the EEM/SPY ratio (iShares MSCI Emerging Markets Index ETF/S&P 500 Index ETF) is right on the 50 day moving average (0.390) and pierced through October, 2009 support (0.3925). EEM/SPY is currently trading at 0.391.
Watch the chart here (Stockcharts.com). On the 3 year chart, EEM/SPY's RSI (relative strength index) fell hard from the October, 2010 peak, from 77 to 47. Also watch that uptrend line from the October 2008 low and May 2010 low going forward if the ratio comes in. The 200DMA is at 0.369. It will be interesting to see how the U.S. and emerging markets react as a pair if there's a correction.
Goldman Advises Closing Bet on Emerging Markets Beating S&P 500 - Bloomberg.com
Goldman Advises Clients To Take Profits On "Long China" Trade - Zero Hedge
EEM:SPY (Stockcharts.com) - click for full view