The Chinese Government Charade Continues
- Posted by Greg Harmon
- on December 21st, 2012
The charade continues. China is now moving into a recovery phase and the markets will go higher. Just over 6 months ago nobody believed any of the reports out of the government. Managed or made up statistics. But now a couple of good pieces of data and all that has been forgotten. I for
one am not impressed. It was just 4 weeks ago in Invest in China…..Or Just Its Government that I highlighted the difference between the manipulated Chinese economy and the broad Shanghai Composite. While traders and investors continue to tout their prowess investing in the iShares FTSE China 25 Index Fund, focused on a handful of stocks that the government can control, the
broad market still needs to prove itself. It is giving it a shot, making a new higher high as seen in the chart above. But after the long downtrend still has work left to do. Put in another perspective, the ratio of the $FXI to the $SSEC remains in a rising channel unperturbed by the enthusiasm. Until it breaks down below the channel there is not real relative strength in the broad Chinese market. So again, if you are investing in the Government of the peoples Republic of China, then more power to you. But if you think that you are going to win in the broad Chinese recovery you just might be a little premature.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Cree is ready to light things up!
- Premium Earnings 12-1-15
- Well Rested, King Dollar Resumes the Uptrend
- The mosaic of Intel points higher
- Top Trade Ideas for the Week November 30, 2015: Bonus Idea
- Top Trade Ideas for the Week of November 30, 2015: The Rest
- Top Trade Ideas for the Week of November 30, 2015: The Rest Premium
- Top Trade Ideas for the Week of November 30, 2015: The Best
- SPY Trends and Influencers November 28, 2015
- Macro Posts This Past Week