Trading China’s 2 year trading range

The Shanghai has been meandering between 3000 to 3300 since early 2016. That’s two years of sideways nothingness. The index did try to break out of this range late last year, but it quickly retreated into its never-never land range as the trade talks heated up. Trump-o-nomics have been very positive for the US economy and US stock markets. The same might not be so true for some of those nations who derive an economic advantage from lop-sided trading agreements with the USA. It’s clear from this chart that the Shanghai will remain within this 10% swing-range until more positive news comes out of the trade negotiations.

Meanwhile, short termed traders might consider swing-trading the Shanghai through a favorable ETF representing Chinese shares. The index recently bounced off of its 3000 lows. Short termed traders might consider using a daily chart (the chart on today’s blog is a weekly chart) with RSI, Stochastics and Bollinger Bands on it similar to my short termed market timing toolbox. Please refer to this blog where I explain how I use both the Bear-o-meter and my short termed timing screen on the S&P 500 index. You can simply translate the indicators of the short termed timing model as its explained on that blog, and the methodology, to the Shanghai  index.

By the way, keep Wednesday June 6th open on your calendar. I’m on the 12:00 Bloomberg/BNN MarketCall show that day. I’ll remind you again as the date draws closer, but thought I’d give you a heads up today.

Leave a Reply

Your email address will not be published. Required fields are marked *

11 + 8 =

Topics

Topics

Recent Posts

gold

Gold oversold: Time to be bold, or should it be sold?

TAN

Green energy stocks extremely overbought

dow theory

Bear-o-meter neutral, with some caveats

gsci

What does a commodity bull market look like?

pink_flamingos_1050x700

Short termed momentum indicators suggest a minor correction pending

hun

Nat. gas holds opportunities for traders

cta-bg

Never Miss an Opportunity

Sign up for our newsletter to receive valuable insights that are available only to subscribers.   Beyond the blog – beyond the videos – get the inside scoop.

Scroll to Top