Last year, I analyzed the prospect of A bull market in China's a-shares. The current view remains the same. In the next 10 years, China's stock market will be the hottest asset in the world. Logic is as follows 1. The globalization of a-shares is accelerating, and the new foreign capital access system leads to more capital flowing into a-shares. Msci, s&p,...
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A look at the comparison between the S&P 500 to the Shanghai Composite (in purple) shows that correlations have broken down since mid-Feb, despite the vicissitudes imparted upon both markets together by ongoing of US-China trade talks.
In China, the Shanghai Composite endured its worst week since October, demonstrating the influence that Beijing continues to yield over its markets. The index lost 5.6% for the week after the government signalled that it would pare back support for the economy amid evidence of a recovery. The index has lost all its gains after breaking out of a bull flag earlier...
The SSE closed lower for the week at 3,188.63, and may be forming a second, smaller bullish flag; the market could be gathering steam before making a push towards 3,320-30 resistance.
Turning actually bullish, this may ignite another bull market.
4 months consolidation phase spawned a considerable liftoff that exceeded my expectations and made me turn my monitor vertically to inspect the full height of that pop. What's next? Cyclic nature of open-ended markets entails the never-ending torrent of repeatedly changing accumulation phase and distribution phase in such a way that the end of an antecedent phase...