Everything should be self explanatory in the chart. Of course - this will work until it doesn't, but for now, it seems like a pretty damn reliable indicator.
Go long SPY when the Hang Seng Index hits the lower range.
Sell SPY long and short the Hang Seng Index (hong kong stocks) when the top end of the range is hit.
The manner which this has historically timed major market tops and bottoms is rather ridiculous. The data speaks for itself to be honest.
The idea represents the emergent market vs mature market with money flow from around the world, I see the SPY reacts many times at the end of the HSI dropping cycle. The logic from this chart is very simple and easy to follow, one of best chart to save. Thank you.
By the way, the last 3 months of every drop trend is very juicy, add a 2x/3x bear ETF will make this strategy works even better.
warrenbuffett123
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bottom line triggered again? can u update this graph ahha u da man!
GTStockmaster
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@warrenbuffett123, This was updated a few weeks back fwiw. Wasn't quite ready to update it in the summer since it was likely to consolidate before any break this large (which is what happened). At this point, the breakdown and fall out of the range looks good, but I think there is a decent shot it will retrace and retest for a little while. Breaking big chart patterns like this don't normally happen without retests, and they often take a while to fully play out.
warrenbuffett123
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Looks like a self fulfilling prophecy now considering the protests and trade war haha
SiriusTrading
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tecknit
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This is the best Hang Seng Index chart i've seen, thanks for this.
Matthew852
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Thank you so much. Really inspiring
andrewau2014
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I just heard of some stock commentators in Hong Kong says this time the magnitude will be the 1997 crash plus the 2008 crash. What do you think about it?