Please try another search
After a margin debt fueled parabolic ascent, China’s Shanghai Composite has been in virtual free-fall for the last month. Bloomberg put together an interesting chart which effectively illustrates the timeline of events which led to where we are now:
Judging by media coverage and social media message volume, we are in the throes of a full-on market panic. One which is being led by margin calls and forced selling. While there is no way to know for certain when the last margin calls will be done, we probably aren’t too far away from a tradable rally after a ~35% decline in less than a month.
StockTwits FXI (iShares FTSE China 25 Index Fund) Message Volume
It’s safe to say that a major top was put in place last month, however, even dead cats bounce a little after hitting the ground. The 3200-3400 price zone on the Shanghai Composite is a reasonable area of potential support from which a rally could begin.
North American traders could use the leveraged exchange traded fund Direxion Daily FTSE China Bull 3x Shares (NYSE:YINN) to trade any potential relief rally over the coming days.
A standard, post-crash oversold relief rally typically retraces anywhere between 35-50% of the decline which makes the 4000-4400 area a solid upside dead-cat bounce target depending upon which level Shanghai ultimately finds support.
The Russell 2000 (IWM) has been defending its 50-day MA over the early part of 2024, but the last few days have seen a shift in this support with 'sell' triggers in the MACD and...
If you had been following the S&P 500 closely this past week, it likely would have left you scratching your head if you were trying to align the news with the market action. For...
Consumer instinct is a wonderful attribute to have and is generally talked about when considering stocks to buy.What Is the “Consumer Instinct”? “Peter Lynch is one of the most...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.