Here is a log scale, daily chart of the Shanghai composite index. I last commented on this chart here.The bull market in China is alive and well, despite many skeptical naysayers. The Shanghai index has dropped for the past 6 weeks but has reached what I think is strong support in the 4800-5000 zone. The next leg up is about to begin and take this average into the 7500-8000 zone.
60% Rise from here - I think that's a very bold statement although without a stated timescale, I suppose it's open ended on your behalf. For what its worth, I think there is far far too much froth in China at the moment and as Americans slow down their China purchases, I can see a pull back to the 3500-4000 level.
ReplyDeleteYesterday we added to our position with our Asia (ex Japan)hedge fund! Having lived and worked in Taiwan for Philips I realize the dynamics and energy of the Chinese people. Taiwan is the biggest foreign investor in Mainland CHINA.
ReplyDelete1 of GOD's servants who is greatful
HEY CARL
ReplyDeletename is joe ( same guy who was looking at the larger 5 touch points ) i just came accross myweekly 3 peaks domed house pattern on the dow and i wonder your thoughts on this .
from oct 2002 low
1 2 3 to feb 2004
point 10 oct 2004
point 15 ( if memory serves correct lindsay said dont call point 15 to early .
point 15 june 2007 ( or july 2007 )
augest lows point 17
oct high point 17
nov low point 18
if this is to be true then point 19
should correspond with the daily
narrowing triangle and go above
13962 .
point 20 would be about where we are now .
point 20 would bottom from feb 28
to march 6th 2008 .or as late as
the week of april 4th 2008.
this would project the dow to
16253.59-16419.50 to a stretch of 16853.77 .
ill still stick to the need of 13963 to be touched for conrimation though as my work is technically calling a low in
into the march april 2008 time period , and also price wise 12200
is still out there for the ideal reaction low . since triangles give up for time then price though
ill give some benift of doubt for some upside yet sticking to a low
in the dates noted.
if it turns out to be a larger pattern then 12200 by april 2008 .
the smaller i just mentioned above
no,no,no the bull market is alive in China and towards the olympics next year we will see at least a re-test of 6000 but I do not beliefe we will stop there yet.
ReplyDeleteBuy this market on any further weakness
It probably signal the arrival of an era of hyper inflationary pressure....so while the index absolute number can reach there, the absolute relative will see reduction..in fact i think by 2009/10, the index number will be even higher.
ReplyDeleteThe Shanghai market is for gamblers only! It is not for investing. China's crash is the next crises
ReplyDelete