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Cn50

Time to go all in for China A shares ?Read positive news here and here I am of the opinion dips are for further accumulation as I am bullish on China story for the long term. But I won't recommend going all in or show hands with China A shares. There are still many unknown factors in the market , Q2 GDP data, unemployment in China, business activities , US-China trade war, Huawei saga, investigation of China on independent Covid-19 virus spread, etc. So, do diversify your risks , calculate your position sizing, always have a Stop Loss and manage your positions, not taking for granted things will go the way you want. Have contingencies. Of course, the longer your time frame of holding , the less concerned you are with the daily volatility.
CLong
by dchua1969
What happened when more money is injected into markets ?Take a look at this 3 line charts - SHCOMP, CN50 and HSI respectively. When 1.2 trillion yuan were injected into the markets, the 3 indices did a V shaped recovery almost instantly! Currently, SHCOMP is in the lead, followed closely by CN50 and HSI with a fairly strong pullback. The whole world is now watching how China central government will react on its monetary policies as being the world's 2nd largest economy, its action or inaction will have a severe impact on the global economy. The Chinese are the world's largest spenders when they travel and many hotels, restaurants, theme parks even properties are suffering (with some bemoaning they can only withstand for 3 months before they closed shops). This black swan event caught many by surprise and its pervasive and seemingly difficult to control has kept many world's leaders sleepless night. If you are like me ,a long term investor of China and buy into the China story of it overtaking US in time to come, already with its technologies, this drop is a good opportunity to buy the indices or individual companies at a cheaper price. We have yet to really see the impact of how these markets will be until the Q1 2020 GDP results are released. Many analysts are hoping this epidemic be contained and number of cases begin to reduce so that business can return to normal. There are many lessons that we can learn from this event 1. How integrated and connected the global world has become and the importance of collaborating with one another to fight a common battle 2. Business Continuity Plan - When this event is over, I think more meetings will be held in boardroom to discuss how to prevent a disaster like this again. Eg. when business are overly concentrated in China, with 60-70% revenue generating from it will suffer drastically. Other examples include the businesses that depend on China tourism - Cambodia casino , overseas hotels, restaurants, luxury properties, etc 3. Emerging opportunities - How the tech giants like Baidu, Alibaba, Tencent and others are leveraging on AI to help combat some of the challenges they faced in this crisis. Will this technology become an emerging trend that can be scale up in the future ? Next, working from home - a yet to catch on concept in Asia, especially China - will it be the catalyst for change in the traditional 9 to 5 working environment ? If the government support this policy, then employees need to purchase properties that is near to subway or close proximity to their offices thus reducing on hefty mortgage loan. Working from home also introduce a whole set of new changes such as video conferencing, screen sharing, encryption of files sharing,etc. We can take a leaf from the European countries and adopt this work from home culture. In short, as trader and investor, we must remain stay open to opportunities and not miss the woods by focusing too much on the trees within.
TVC:HSI
by dchua1969
CN50 longterm trendline resisting strongly on Coronavirus fearChinese indexes, Hang Seng Index ( TVC:HSI ) and Strait Times Index ( TVC:STI ) have been tumbling today on fear of Coronavirus spreading to other parts of China and more countries. We are reminded of SARS in 2003. The Wuhan flu virus belongs to the same family of coronaviruses that causes SARS, which killed nearly 800 people globally during a 2002-2003 outbreak that also started in China. Technicals in CN50 do not look good initially already. With possibility of coronavirus outspread, this might add to more bearish bias.
OANDA:CN50USDShort
by appy
US China trade war is not over. Bitcoin will pay the price.Bitcoin does not act in isolation from the world economies, fact. There are times that Bitcoin movement is inconsistent with world markets but in general, a bull market in world economies contributes to a bull market in the crypto-currency space. This is especially true for the Chinese economy who were responsible for >80% of Bitcoins trade volume prior to its ban in December 2017. Please note this aligns with the start of Bitcoins economic collapse. Likewise, the Bitcoin market recovery starting Jan 2018 is aligned with the Trump Xi trade war truce that saw the S&P500 and China A50 markets surge. I believe these two world markets are due a correction and that this will contribute to the Bitcoin bear market. Please refer to a previously proposed short on United States S&P500 and China A50. The-Trade-War-Is-Not-Over: These analyses serve as a supplement to: -Logged-recovery-pattern-5500-before-year-end/ Please follow or give us a like.
BITSTAMP:BTCUSDShort
by warrenhochfeld
Asia Dragon Dominates - CN50It took only 3 months in 2015 May till Aug for the index to crash 45% from its peak but is more than 2 years now and we are blessed indeed to see it pulling back nearly 57% of its previous shiny days. That means it has nearly 15% more to catch up to its previous high. Notice the nice Cup formed, expecting a right handle to be formed soon (pull back). The fall will be between the 50% and 61.8% FIB level . It may not as well upon closer examination as the price has pierced through the 61.8% FIB, retrace and closed with a nice green candle. There are tons of good news to focus on : 1. www.scmp.com 2.https://www.bloomberg.com/news/articles/2017-11-09/why-singles-day-is-biggest-shopping-spree-ever-quicktake-q-a (this is more than Alibaba in the limelight. This article again emphasized the rising emergence of the affluent middle income with high purchasing power, consumption is going up the roof like never before) 3.http://www.zerohedge.com/news/2016-10-22/china-moves-forward-its-de-dollarization-strategy Once upon a time, China was known as the world's biggest factory (it is still to many countries) but slowly but surely, it is now gaining recognition for its R&D, automotive and tech industries. If rich consumers are splurging on overseas properties, then the tycoons and business owners like Jack Ma, Wang Dalian and many others are buying up entertainment, buildings, etc to increase their market share. Why did Jim Roger send his daughter to study chinese ? So is President Donald Trump's granddaughter as well. They both recognise the importance of the chinese language and to fully understand the culture, language is one important key to it. I am bullish on China for the long term
OANDA:CN50USDLong
by dchua1969