📌 A quiet few weeks and enjoying the last few days of summer before things get very active in markets for the rest of the year and into 2021. Global Equity buyers received their reward for their braveness play: overshoots are a weakness. See diagram below. The mysterious 2650 lows were held from the Giant Panda (PBOC), when retail threatened the...
SHCOMP is heading towards an historical collapse. It is basically a big head and shoulder on a trendline. Crypto is totally dependent of the healthy state of the Chinese market right now so this will have big repercussions on the market.
I saw a man discuss the relative performance between the Shanghai Composite and the S&P 500, and he suggested that based on that analysis, the Chinese market was set to outperform the US market. But I wasn't satisfied with the analysis because he established his ratio in arithmetic scale, which gives it a bit of a distorted look, given the terrific swings the...
!SHCOMP Long Entry 13:02:45 (UTC) Mon Aug 3, 2020
When I have examined the Shanghai Composite in the past, I have used the arithmetic scale, which I most often customarily use and here is what that looks like: Based on that, we see a symmetrical triangle, with what appears to be the beginnings of a great launch in progress. However, given the risks I believe all of the world markets are now facing, I just...
If history rhymes...SHCOMP is trading in a perfect pattern...going up after the consolidation is highly likely, target 4500
The "hanging" candle The problem is as follows: If the only way to reach risk-on in and remove social distancing is either via a vaccine (most preferred option although not really in scope till 2021) or further extreme lockdown measures (as you all know extremely costly and damaging to the monetary side) to completely remove the virus from circulation. With...
🔸 China Macro Flows 🔸 The point of this configuration is that CNH is influencing the currency, equity and commodity board that can be seen in AUDUSD, NZDUSD, OIL, Gold and everything in-between...USD's cannot make any use of the Yuan devaluation and this has been a threat ever since Saudi unlocked the CNY oil contract. For those tracking the Long-term Macro...
Shanghai Composite Index Short Entry: 12:55:21 (UTC) Wed Jul 15,
Do you love money ? I think you and I do but the Chinese really loves money. Two things that really make them rich, I mean filthy rich in China. One is property and the other is the stock market. And they are risk takers though not necessarily prudent in managing risks. They do not hold back when they think or feel this is the time to go all in. Read article ...
Here's an interesting stock index comparison. Notable NASDAQ is the out-performer amongst this group of indices. On Friday the NASDAQ printed it's all time record highs closing the day at 10,836. Last week this index smashed through the 10,000 handle completely disregarding it for any level of psychological resistance. Meanwhile the COVID19 reported another...
In a few days did the work of a previous quarter $FXI, $FXP
Breakout direction will be interesting.
SHCOMP has formed a Golden Cross on the 1D chart turning vastly overbought (RSI = 89.841, MACD = 105.710, ADX = 52.201). Last time that took place within the long-term Channel Up that started in January 2019, the market consolidated for a few days and delivered a last peak in a month. The MACD has entered into this red Resistance Zone of the 2019 consolidation, so...
📍 In this position, after clearing the knee-jerk reaction from covid flows we are starting to enter into chapter II, heavy protection. The flows have shown strength in drastic fashion; the apparently bottomless wallet of keynsian economics - suddenly showing a surprising amount of animation! You can see the impact of PBOC on Chinese Equities here: ...and now...