• 13 hours Can The British Pound Overcome Brexit?
  • 19 hours Is A Gold Breakout Near?
  • 2 days Federal Reserve Downgrades U.S. Growth And Cuts Rate Hikes
  • 2 days Disney Beats Out Comcast In $71.3B Mega-Merger
  • 2 days The Feds Continue To Prop Up Equities Markets
  • 2 days Bejing's Sway In South China Sea Is Fading
  • 3 days Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 3 days Airbnb In Acquisition Mode Ahead Of IPO
  • 3 days Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 3 days Champagne Sales Slow As European Economic Worries Grow Louder
  • 4 days Putin Signs “Digital Iron Curtain” Into Law
  • 4 days Russian Metals Magnate Sues U.S. Over Sanctions
  • 4 days Tesla Looks To Jump Into Indian Market
  • 4 days Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 5 days Homeowners Experiment With Risky New Investment Trend
  • 5 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 5 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 5 days Ford CEO Gets Raise After Massive Layoff Round
  • 6 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 6 days Where To Look As Gold Miners Inch Higher
Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

  1. Home
  2. Markets
  3. Other

Shanghai Correction Achieves Initial Target

Chartworks, by Ross Clark

The Shanghai market has suffered a very poor week achieving the upper range of our targeted support. It has retraced 50% of the rally from the February low and kissed the 50-week exponential moving average. It is also within 200 points of a 50% correction (3960) of the rally from last year's low. This type of action following the parabolic run mimics the NASDAQ as of April 2000 and gold as of May 2006. We'll monitor this, one step at a time, not knowing if this was the ultimate top or where it will build a base for a new run. For now, we anticipate a wide range consolidation between 3900 and 4800 over the coming weeks. The optimum strategy during such a period would be the sale of puts or put spreads to earn time value now that option premiums have expanded.

Shanghai Correction Achieves Initial Target
Larger Image


Back to homepage

Leave a comment

Leave a comment