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Friday, 14 October 2016

China 300 Index: 14 October 2016, Friday, 2.30pm Singapore Time

China 300 Index: 
14 October 2016, Friday, 2.30pm Singapore Time

Attached above is the technicals of China 300 Index, reflecting the financial market conditions in China.  China has been consolidating bullishly for the entire 2016. The bullish accumulation is with strong intention to rally. The ascending triangle (bullish in nature) has also previously achieved a breakup at the golden ratio point. The stock market in China is currently camping for a powerful super rally in 4Q-2016 and 2017 amidst all the gloom and doom worldwide. Markets in China and Hong Kong are all making the resistances become new supports to serve as a base for rally launches. Stock markets worldwide are preparing for a propulsion to the upside in 2017. I am adding some more buys for China Markets.

Additional Note:
Majority of the herd are anticipating a bear market now and see no reason for markets to go up. They are mostly expecting a recession. Hence, we will not only have a rally in 2017 amidst all the gloom and doom, we will have a SUPER RALLY. This will make a lot of hearts crumble because financial markets will cause the herd to be wrong again having successfully made them believe with conviction that there is no reason to rally but plenty of reason for recession. Come 2017, a lot of economic data will surprise greatly to the upside.

DNA Technical Rating:
【Worldwide stock markets to have synchronized super rally in 2H-2016 and 2017.】

Previous Chinese Market Analyses:


  1. Hi Donovan, thanks for your posts and enjoy readong them. I have to agree with you on the point that many people are very bearish now. Some that I have come across are even predicting amagadon, e.g. widespread failure of banks, China have a hard landing, Central bank policies no longer working no matter what they do, etc. I have to admit that this has to some extent influenced me. While I am not exactly bearish at this moment (in fact I would say I am cautiously optimistic instead, as there seems to be some recovery in commodity prices, US seems to be doing ok, and China data though not fantastic, does not appear to point to a hard lending in the near future). However, I would just like to understand from your personal opinion as to why you would be so bullish now as from what I can see, there does not appear to be any catalyst to spark a big rally in the near future given the weak/slow growth economic environment around the world currently, which seems like a new norm going forward. Thanks.

  2. When every man in the street gets to know the catalyst, and even gets bullish facts from the newspapers, that is when markets are distributing to the herd again. The reverse is also happening right now. There is never a better time to sell like hot cakes to plenty of herding people who like to buy trending (in-fashion) hot cakes, when they are hot, hip and rosy. The reverse is also true right now: cold, unhip and gloom and doom