Beware China: 2 Observations
TLDR: China looking weak short-term. Will wait for confirmation before taking larger positions.
I know we all ‘love’ great President Xi. For those who are interested in trading or investing in China, you might wanna read this.
Today (Oct 8), we saw a ~10% pull back on HSI which is extremely healthy in my opinion considering how the market just went through an illogical bull run. For those keen on re-entering, it would be wise to stay out until you see a gap fill at ~$19,900.
Today (Oct 8), we saw a ~10% pull back on HSI which is extremely healthy in my opinion considering how the market just went through an illogical bull run. For those keen on re-entering, it would be wise to stay out until you see a gap fill at ~$19,900.
Case 1 - HSI
At least this is my game plan for the Chinese market in the next two to six weeks. There could be a possibility that market goes side ways till early November 2024. I have a couple of shorts open which are currently in profits, and I will be looking to close them by next week.
Case 2 - Nasdaq
Another indicator of short-term weakness that is showing me bearish signals is how the Nasdaq is facing multiple rejections in the last two weeks.
As you see in the charts, Nasdaq failed to break out out its descending triangle, and has also broke below its SMA 100 proving market weakness. Right now, it is still looking to find its support and might go even lower. I want to see a retest and it needs to hold above $480 before taking bigger LONG positions.
$Hang Seng Index (800000.HK)$ $NASDAQ (NASDAQ.US)$ $HSI $QQQ
$Hang Seng Index (800000.HK)$ $NASDAQ (NASDAQ.US)$ $HSI $QQQ
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aspiring investor & gamer. i mostly focus on technical analysis, and will try to share my observations.
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