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China’s Shanghai Index: No Longer A Market Leader

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

Take a look at this monthly comparison chart of the S&P 500 Index (SPX) versus China’s Shanghai Index (SSEC).

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While the SSEC literally exploded during 2007 compared with the gains made by the SPX, and made an anaemic attempt in 2015, it’s, essentially, gone nowhere since mid-2015.

If this is a harbinger of things to come, I’d say that China is in for a rough ride over the next few years…particularly in light of the current trade war with the U.S. And, it’s time for them to negotiate in good faith, as Senator Grassley has tweeted.

You can see from my post of May 6 that major support sits at 2500 for the SSECIf it blows through that level, watch out below!

World markets closed the day massively in the red on Monday…possibly related to this trade escalation and perhaps other world tensions, e.g., Iran, Venezuela, North Korea, etc., as well as slowing world economies. We’ll see how overnight trading fares in China tonight.

P.S. Is anybody besides me getting tired of President Trump’s incessant “good-cop bad-cop” tweets/messages regarding trade talks with China? All you have to do is look at this 60 min chart of the SPX to figure out where and when after-hours “bad-cop” tweets/messages were let loose by either him or his negotiators, and when “good-cop” tweets/messages were released during market hours. It’s getting silly…and predictable.

And, isn’t it about time that he finally outlined a comprehensive trade policy that, not only includes China, but other world countries, as well? It’s long overdue, in my opinion!

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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