Hello everyone. Shanghai Composite index fell from previous high level of 3730 yesterday. How will the index move?
On the fundamental side, three key figures, Retail Sales y/y, Fixed Asset Investment ytd/y and Industrial Production y/y are all below the estimation. That triggered sell-off around 10 am in the early trading session.
On the technical side, the...
Hello Chinese A share stock traders. After days of consolidation, finally Shang Hai Composite index broke the downtrend line firmly.
A pullback might happen with a support zone below marked in yellow color. By applying measured move(abcd) , the index is likely to face increasing selling pressure around 3619-3635 which is 50-65 points further up from the current...
Hello everyone. Chinese mainland stock market tumbled for the second day, amid over 4% drop of HK market as well(refer to the chart below). The ab=cd pattern totally failed as expected because the context is different when I measured the possible pullback zone many days ago.
Following yesterday's northbound outflow of CNY...
The SCI wiped out the four months of gains in just two days. In addition, it broke support levels and is leading towards a lower target about 3,200.
All these on the back of regulators setting new rules for the game.
Also understand that street talk tells of margin calls too.
Technicals are just turning down, so that -5% may just be a beginning.
If you are given an axe to chop down a tree , you may be able to do so in a few hours (depending on type of tree and experience). But to do it daily and to increase the number of trees to be chopped down would require much more time. This not only increase labour costs and time but it is also not efficient.
Now, the boss gives you a chainsaw. This piece of...
looks like a local top and possible global deflationary environment ahead for the next year or so.
hedge with cash and bonds might be best bet but I would not personally short the market.
Tip: Indicator needs to be improved by normalizing the data from various indices before averaging(not done in graph above)
Hello everyone. Shanghai composite index has been weak for the past few days. Actually, we recommended clients to take profit last week based on momentum and formation structure.
Now, the nearest support zone would be 3503-3496. After the gap being filled, the index might get some momentum to go up.
What do you think? give me a like you're with me.
If you're allocating capital at a global level, then here's chart that may be of interest:
I've been flagging Chinese equities since Dec-2020 as well as Dec-2019 at 2984 - (see link to related idea) and although it's lagged year-to-date relative to its global peers, I think things are finally starting to move.
My previous comment as follows: "China's Shanghai...