The obsession of catching the bottom and being proven right is so strong that many would fall for it willingly , taking an unknown risk with no idea if the down trend has reversed.
Looking at the weekly chart, if Oct 2022 is the bottom, then the current downtrend should be rebounding soon and not continue to fall next week/year in 2024. If I am right and it does fall to revisit the Oct low again, creating a double bottom , which I have neither the skills nor foresight but mere conjecture. So , do take this with a pinch of salt and DYODD.
China stocks or ETF for that matter has been hated by many, both institutional and retail investors for some time now, losing trillions of dollars at the seemingly uninterested government of China.
Really, the government is indeed doing something (read here and here
Therefore, I believe the China government is very likely to cut interest rates and print money to stimulate the economy. This would boost corporate lendings and help the private sector to recover, to grow at a faster pace without resorting to cutting prices to beat competition. Trickle down to the retail investors, company expansion would help to improve job opportunities and stabilise the household income, thereby returning the much needed confidence to invest in the stock market again.
Of course, this is my wishful thinking and it may or may not happen so we will have to wait and see. There is no rush to show hand just to catch the bottom but rather wait for the trend reversal to takes place and then participate in it. So what if you missed the bottom which in retrospect are known after the price action is shown in the chart weeks or months later.
Patience remains a skill , one that is scientifically not taught in the investment world but rather a psychological state of mind. It can be trained and improved over times and different measures can be put in place.
Depending on when you review the chart, one might have taken a long position in Dec 2022 when it breaks out from the bearish trend. They should be in break even stage now if prices do not continue to falter but nobody knows for sure.
Like I said so often, market always give us a 2nd or 3rd opportunity. So for those who like this company, we just have to wait patiently for the price action to break out before deciding to go LONG.
FOMO stays regardless we are in 2023 or 2024 or beyond. Where human prevails, the old adage of greed and fear will continue to drive the market. So be careful when you go overboard and pull back a little and let the hard data (charts) tell you if you are following or against the trend.
WIshing everyone a Happy and Prosperous New Year.
Looking at the weekly chart, if Oct 2022 is the bottom, then the current downtrend should be rebounding soon and not continue to fall next week/year in 2024. If I am right and it does fall to revisit the Oct low again, creating a double bottom , which I have neither the skills nor foresight but mere conjecture. So , do take this with a pinch of salt and DYODD.
China stocks or ETF for that matter has been hated by many, both institutional and retail investors for some time now, losing trillions of dollars at the seemingly uninterested government of China.
Really, the government is indeed doing something (read here and here
Therefore, I believe the China government is very likely to cut interest rates and print money to stimulate the economy. This would boost corporate lendings and help the private sector to recover, to grow at a faster pace without resorting to cutting prices to beat competition. Trickle down to the retail investors, company expansion would help to improve job opportunities and stabilise the household income, thereby returning the much needed confidence to invest in the stock market again.
Of course, this is my wishful thinking and it may or may not happen so we will have to wait and see. There is no rush to show hand just to catch the bottom but rather wait for the trend reversal to takes place and then participate in it. So what if you missed the bottom which in retrospect are known after the price action is shown in the chart weeks or months later.
Patience remains a skill , one that is scientifically not taught in the investment world but rather a psychological state of mind. It can be trained and improved over times and different measures can be put in place.
Depending on when you review the chart, one might have taken a long position in Dec 2022 when it breaks out from the bearish trend. They should be in break even stage now if prices do not continue to falter but nobody knows for sure.
Like I said so often, market always give us a 2nd or 3rd opportunity. So for those who like this company, we just have to wait patiently for the price action to break out before deciding to go LONG.
FOMO stays regardless we are in 2023 or 2024 or beyond. Where human prevails, the old adage of greed and fear will continue to drive the market. So be careful when you go overboard and pull back a little and let the hard data (charts) tell you if you are following or against the trend.
WIshing everyone a Happy and Prosperous New Year.
Comment:
www.channelnewsasia....cial-removed-4022136
Comment:
Looking at support 244