26 Nov 2021: US put certain Chinese companies on sanction

So it seems that the Biden and Xi's talk earlier this month was pretty symbolic in nature but yet fail to achieve any substantial good faith from the US side. From how I see it, China has been sending signals that they want to do something by having its CSRC to be in talks to prevent Chinese companies listed in US from being delisted (getting their companies to potentially share their working papers with the official auditing firms recognised in US).

US on the other hand has been touching on sensitive areas that we know China is not going to give in. From technological to defense aspect, China is not going to give in and with US insisting to test water on these areas, there may be a chance of greater rift between these 2 major powers. Now with Biden nearing the end of his 1st year of presidency, there are still another 3 years which Biden can "test water" with his policy action.

With US 2022 mid term elections coming in 2022, both senate and congress with Democrats and Republicans taking the opportunities to touch on sensitive areas to get voters' attention, the signals from US may only get worse before getting better like what we saw from the days leading up to 2020 US presidential election between Donald Trump and Joe Biden.

So, stay agile for trading positions for volatility and for me, I will not chase stocks (which I use for trading) at resistance level. Support level has to be watched carefully to see if there is a potential for downside. All in all, I expect greater volatility going into December 2021 and year 2022.

This is my youtube video on the PBOC's report for 3Q2021:

I cover macro markets, macro conditions, individual stocks, commodities, etc on my youtube channel.

As always, this should not be construed as any investment or trading advice.