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SHCOMP

I am "Mr Invincible"Do you love money ? I think you and I do but the Chinese really loves money. Two things that really make them rich, I mean filthy rich in China. One is property and the other is the stock market. And they are risk takers though not necessarily prudent in managing risks. They do not hold back when they think or feel this is the time to go all in. Read article here I lived in Singapore and thus far I have not heard about the government encouraging the people to put money in the stock market, directly or indirectly. Not China, not USA and maybe some other countries. Let's take a look at the chart. Both SHCOMP and China A50 which I posted my views ( here and here ) Both are up about 30% from the bottom in March 2020 while Hang Seng Index (HSI) is only up about 17%, which offers more potential for upside. Again, I advocate prudent risk management. I have said and shown through various indices, stocks in Hang Seng and China that I bought that showed good profits. There is no need to ask your friends for money, go to bank and borrow nor sell your house and sink the whole kitchen into the stock market. This , to me is taking on too much risks, maybe not for others. Average up slowly on each pullback and each time, stick to the 1-2% risk per trade rules. Avoid doubling or tripling your position sizes hoping to make money quicker and within a shorter time. Mr Market can be nice to us but it can also become nasty at a turn of events that you and I cannot know nor predict like the Covid-19. In the words of legendary Warren Buffett- the first rule of trading is not to lose your money. That means at all time protect your capital. So guys, chill and not to think this bull run is going to be over soon and your fear of missing out cause you to go take on additional risks. Think of your loved ones, family and even yourself. Always think what if I am wrong ? That is not being cowardly like some traders said but being RESPONSIBLE. Maybe, you think it is ok to go all in and worst case scenario, you just put in the extra hours to earn back the money. But if you have dependants that need your income to pay the bills, education, rentals, etc, then it is wiser to think twice. Everyone situation is different, do the best you can without following others blindly. Such "all or nothing" mindset is taking things to extreme and is betting big on luck to be on their side. Another thing is having peace of mind. If your portfolio is in the red, your life still goes on. But if it affects you so much then, you probably have weighed too much in and you need to pull back a little. Strike a balance. May the blessings of God be with you. 1 Peter 5:8
SLong
by dchua1969
2
Shanghai: Still some upside before profit taking kicks in.SHCOMP has formed a Golden Cross on the 1D chart turning vastly overbought (RSI = 89.841, MACD = 105.710, ADX = 52.201). Last time that took place within the long-term Channel Up that started in January 2019, the market consolidated for a few days and delivered a last peak in a month. The MACD has entered into this red Resistance Zone of the 2019 consolidation, so there are high probabilities that investors won't close massively positions and let profits run a little higher towards the 3,580 2 year Resistance (January 2018 Top). ** If you like our free content follow our profile to get more daily ideas. ** Comments and likes are greatly appreciated.
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by InvestingScope
1
Major Highs Cooking for Chinese Equities!📍 In this position, after clearing the knee-jerk reaction from covid flows we are starting to enter into chapter II, heavy protection. The flows have shown strength in drastic fashion; the apparently bottomless wallet of keynsian economics - suddenly showing a surprising amount of animation! You can see the impact of PBOC on Chinese Equities here: ...and now buyers had a simple win by testing the 2983 highs. The retrace idea was as follows; overprotecting a strategically important structure. The reward was to open up a retest of the support which was an all embracing struggle for the PBOC: In the long run, the positional struggle from CB's will come down to a struggle between healthcare on one hand and restraining capitalism on the other. It is extremely important to strive for re-openings in sensible fashion since the virus is still in circulation and lusts to expand. Health crisis cannot be solved with throwing money at it... not enough time has elapsed so the Stan Erck pump and dump we are watching with Novavax is set to flop and sadly put the final nail in the coffin for Global Equities. As usual thanks for keeping the feedback coming 👍 or 👎
SShort
by ridethepig
7
Why is China SHCOMP rallying when China is having bank runs?www.bloomberg.com China financial system is having tremors, Hong Kong clampdown, India border clash, chest beating in the South China Sea, rhetorical tensions ramped with "China Flu" dogwhistles. S&P follows $SHCOMP's lead to a very impressively green Monday. But what on earth is going on over there? And don't get me wrong, I know what you're going to say - "The fundamentals don't matter" right? It's all just driven by central bank liquidity? Well, (A) I'm not convinced the FED has that tight of control over the world/US economy in the first place (though they don't hurt), but more importantly (B) when it comes to the PBOC and the Chinese banking system... I'd argue you're quite right, and all the more reason to keep our eye on the ball when something is afoot. Not sure what's going on but I'm monitoring the situation closely. Trading-wise, I honestly want to be short $SHCOMP given the many issues but if I were actually putting money on it I'd long it. I think of it more as a macroeconomic / market climate indicator. EM rally == risk off. Doesn't matter if it's the tail wagging the dog in this case either if people get caught up in the tape and start the buying like they did here today (Monday 7/6).
SLong
by dotpem
China's SHCOMPThis one is one wild ride. What we call our initial "COVID dip" in January was an absolute crash over there, and it almost immediately recovered. But then, when the world markets crashed in February and March, the Shanghai Composite crashed again with them. Goodness. And then, much like the other markets, it formed a nice wedge off the March lows. However, instead of breaking down, some positive economic news reported sent it mooning. This has completely negated the flag. Long-term (below) is one of the most structured mega triangles I can think of. Each of the peaks correspond to unprecedented central bank intervention when their economy showed signs of slowing. And for those who want to keep insisting that central banks can goose the markets forever and ever and ever, you can clearly see here that there are diminishing returns. Just think of all of the stimulus the Chinese Central Bank has injected into their economy just this year alone to combat the economic slowdown from the virus. Look closely: it has only gotten us a bump off the lower channel. That should make you pause. If they push hard enough, this could try to retest the top channel again, but I would not expect it to stay there.
SShort
by CHTradingGroup
2
Position yourself for China's Economic RecoveryWith all the stimulus being pumped into global economies, China is having its fair share. What happens when large amounts of liquidity floods the market? You betcha. It is only a matter of time till we get a spike in the markets which has happened time and time again. I have Long positions in the following ETFs 1) 515050 - 5G ETF (20%) 2) 510300 - SHCOMP ETF (20%) 3) 159996 - Home Appliances ETF (20%) 4) 600519 - Kweichow Moutai (20%) 5) 601939 - PingAn Insurance (5%) 6) 601012 - LongJi Solar (5%) 7) Remaining 10% for speculative bets at 1% size each. Follow me for my adjustments on position trading for 1) to 6), for 7) I will incorporate swing trade/breakout trade strategies.
SLong
by Joeyismoney
Shanghai Composite Index price chart analysisShanghai Composite Index closed Friday's session at 2852.351 +6.130 up 0.22%. The Index fell from 2900.000 level in mid-May and only recovered approximately 50% of its losses as of Friday's close. The critical price points to watch, first at 2845.685, support the current crucial level that could determine its next move, 2809.665 the previous support level and 2900.00 the primary resistance level. Major events to watch today is at 11:45 the release of Chinese Caixin Manufacturing PMI reports.
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by Rotuma
Overextended Asian markets ripe for a bounceChinese markets has remained resilient in the face of a bloodbath in global markets with only a forgiving decline of less than 10%. It has now fell to a major support which is the level it gapped down to when it was in the centre of the outbreak. With that it can be observed that strong buying pressure came in as buyers aggressively defended when 2715 was hit and traders covered their shorts. Thus, there is possibility of a imminent bounce.
SLong
by Ian15
ridethepig | SHCOMP Market Commentary 2020.02.24A bloodbath across most of Asia with SHCOMP managing to hold via PBOC intervention. Actively sold the Tokyo close as red alerts have been triggered across Global EQ Index. Those familiar with the current technical flows we are tracking will remember the PBOC dip; it was a classic example of CB intervention in attempt to stop the bleeding. The issue is that markets want to test the limits, CV is showing no signs of abating and the impact is still yet to be seen in earning and growth figures. We have retraced back to the last breakdown point and selling has begun as if a new crisis is here... Good luck all those on the sell-side in equities, a major move in the making if things do not get under control within days on the virus front. Thanks for keeping the support coming with likes, comments and etc!!
SShort
by ridethepig
4