Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market Election Year Cycles – What to Expect? - 4th Jun 20
Why Solar Stocks Are Rallying Against All Odds - 4th Jun 20
East Asia Will Be a Post-Pandemic Success - 4th Jun 20
Comparing Bitcoin to Other Market Sectors – Risk vs. Value - 4th Jun 20
Covid, Debt and Precious Metals - 3rd Jun 20
Gold-Silver Ratio And Correlation - 3rd Jun 20
The Corona Riots Begin, US Covid-19 Catastrophe Trend Analysis - 3rd Jun 20 -
Stock Market Short-term Top? - 3rd Jun 20
Deflation: Why the "Japanification" of the U.S. Looms Large - 3rd Jun 20
US Stock Market Sets Up Technical Patterns – Pay Attention - 3rd Jun 20
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

China's Stock Market, Tick, Tick, Tick ???

Stock-Markets / Chinese Stock Market May 07, 2007 - 03:55 PM GMT

By: Marty_Chenard

Stock-Markets

What the first thing you think of when you hear "tick, tick, tick"?

It could be a clock, but if you watched enough action films, it is usually a time bomb.

China tick #1: UBS's economist, Jonathan Anderson, was stunned when he calculated that China's Currency Reserves went up 1 million dollars a minute during the entire first quarter this year. " This is more than just a jump ," Anderson said in a report released yesterday. " The magnitude and the abruptness of this acceleration are simply stunning ."


China tick #2: At the same time, China's Central Bank Chief is apparently hearing a "tick, tick, tick". In a statement at a Switzerland Meeting this weekend, China's central bank chief admitted he is concerned about a stock market bubble in his country. (Double bubble, double trouble?)

With that said, we will revisit China's Shanghai Composite which is now getting very close to a 12 year Major Resistance Point ... a level, that on the current parabolic trajectory will be reached sometime this month.

We have previously been looking at the Shanghai on a 12 year price chart, and this morning, we decided to also look at it on a Point & Figure chart. Point and Figure charts are valuable, because they take time out of the equation and look only at independent price movement.

The Shanghai Composite's Price Chart: The Shanghai is now only 7% away from its 12 year resistance line. The Shanghai has been closed for holidays, but will reopen tonight.

The Shanghai Composite Index has catapulted up in a parabolic trajectory that took it from 1180.96 in January of 2006 to 3841.27 before the holidays. That was a hefty 225.26% rise resulted in a hyper-parabolic rise that has the index going straight up ... and many think that there is no end in sight.

No end in sight? But, there is ... a very long, 12 year major resistance point will be reached, somewhere in between an index level of 4189 to 4231. Our internet bubble trajectory is being dwarfed by the speed and rise of the Shanghai Index.

The odds of a sharp reversal back down at that point is extremely high, because parabolic movements like this become exponentially more difficult as the trajectory's angle increases. This will also have a negative effect on the world wide markets, so keep an eye on this upcoming event.

Now .... see chart 2 for the Point & Figure chart ...

The Point & Figure Chart is quite interesting because it shows a different picture.

When you look at a Point & Figure chart, the Shanghai Composite has already broken through its 12 year resistance .

However, there is still an up coming 8 year resistance level that will also occur this month based on its current parabolic trajectory . That number is 4131, plus or minus about 100 points.

What could happen? The Shanghai could drop 1000 points in a very short period of time , and the world markets will not go unaffected.

Are there any other world wide indexes showing a problem?

Hedge Fund Manager, Peter Pierce, was kind enough to sent me an analysis of the India's BSE Index.

I don't have permission to show the charts, but the analysis showed an overlay of the index compared to our 1987 crash. The two charts were so similar, you couldn't tell which chart was which.

I know that many investors are euphoric and bad news doesn't mean much anymore, but there are some very definite "tick, tick, tick" noises being heard by many top analysts.

 

By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools.  As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL.  He is an advanced technical analyst and not an investment advisor, nor a securities broker.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules