Hang Seng IndexLong
After the smoke and fire settled down a little, still can buy ?
For those who can understand Chinese and listen to the social media (live streaming, videos, shorts,etc) on Douyin or Weibo, you will be richly entertained. In this age of social media, it is scary how a content creator who has no background of investing or worse, does not invest in stocks himself and yet has the cloud and power to rally his followers to go "all-in" aka show hand in the China stock market.
Instead of listening to all these entertainment , the chart is a much quieter place. All you need to do is watch and not attempt to pre-empt the market moves. On a bigger picture, we can already see there is a resistance at 22, 754 price level , having the price resisted twice previously. Therefore, if one has bought into this index , say 2800 Tracker fund , then you can expect some form of profit taking.
So, if the intention of the CCP government is a slow bull and not to repeat the history of 2015 where it died down and crashed the dream of millions of punters/investors including institutional investors, then how they release the stimulus is KEY.
There will be profit taking along the way, this slow bull trend. Local government is bleeding without land sales and with the property market is crippling, they do need fresh funds to pay salaries and keep the operation going. Therefore, they will be collecting money from the stock market from time to time, suppressing the much anticipated bull market that everyone has been eagerly awaiting. ....
They cannot afford a parabolic move like 23 Sept when the QE measures was announced. The faster it rally, the faster it falls and that would not rekindle the consumers confidence. They would feel played out by their very own government and silent protest will not spend as the government wants so badly. So, it has to tame this wild bull ride up the market slowly.....and manage their meeting and announce the plans clearly without causing too much confusion to the market watchers.
We have 2 months left for 2024 and China in a sense is running out of time to meet its GDP growth. For face value sake , they have to deliver what they set out to do. Those fund managers who are still sitting on the fence have to decide fast when balancing their portfolio at year end as well. They are pressured to answer to the investors who are paying annual management fees and seeing other funds with China inclusion performing better than their own.
That is the dilemma that all concerned parties are facing. Everyone is walking on tightrope and need to keep the bigger goal in mind.
As investors for the long term, we should not be FOMO-ing no matter how loud the party music is and be smart enough to study the fundamentally strong companies and buy them when undervalued........Predicting short term market moves seems exciting on a day by day basis but very few get it right , so stop wasting your time and invest in wisely
Instead of listening to all these entertainment , the chart is a much quieter place. All you need to do is watch and not attempt to pre-empt the market moves. On a bigger picture, we can already see there is a resistance at 22, 754 price level , having the price resisted twice previously. Therefore, if one has bought into this index , say 2800 Tracker fund , then you can expect some form of profit taking.
So, if the intention of the CCP government is a slow bull and not to repeat the history of 2015 where it died down and crashed the dream of millions of punters/investors including institutional investors, then how they release the stimulus is KEY.
There will be profit taking along the way, this slow bull trend. Local government is bleeding without land sales and with the property market is crippling, they do need fresh funds to pay salaries and keep the operation going. Therefore, they will be collecting money from the stock market from time to time, suppressing the much anticipated bull market that everyone has been eagerly awaiting. ....
They cannot afford a parabolic move like 23 Sept when the QE measures was announced. The faster it rally, the faster it falls and that would not rekindle the consumers confidence. They would feel played out by their very own government and silent protest will not spend as the government wants so badly. So, it has to tame this wild bull ride up the market slowly.....and manage their meeting and announce the plans clearly without causing too much confusion to the market watchers.
We have 2 months left for 2024 and China in a sense is running out of time to meet its GDP growth. For face value sake , they have to deliver what they set out to do. Those fund managers who are still sitting on the fence have to decide fast when balancing their portfolio at year end as well. They are pressured to answer to the investors who are paying annual management fees and seeing other funds with China inclusion performing better than their own.
That is the dilemma that all concerned parties are facing. Everyone is walking on tightrope and need to keep the bigger goal in mind.
As investors for the long term, we should not be FOMO-ing no matter how loud the party music is and be smart enough to study the fundamentally strong companies and buy them when undervalued........Predicting short term market moves seems exciting on a day by day basis but very few get it right , so stop wasting your time and invest in wisely
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