Chinese rockets…

090608fuqi

Instead of roman candles, Chinese fireworks.

Over the past two or three weeks Chinese stocks have been rocketing upward.  We know from nothing about the fundmentals of these stocks, but the chart patterns are inflamatory — or on fireworks.

WE looked at a bunch of them which we point out below.

CBAK CHN CHU CHDX CEO FUQI   and that’s just the half of it.

Then of course there’s BIDU but frankly that’s rocket we would be worried about getting on.  We’d be more likely to  scale out or take profits.  Too far too fast.

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This Post Has 6 Comments

  1. eblcsw@email.com

    are there studies correlating angle of ascent with rapidity of descent?Joe B.

  2. marvinho78@hotmail.com

    the Dollar Index is once again under downward pressure. Would it be the intermediate term trend is still down from the big down day on tue?

  3. alain

    as per my research the $USD broke down from its Kilroy formation’s neckline. As per the 9th Edition a test of this point is not unusual.

  4. marvinho78@hotmail.com

    thanks, the entire formation looks like having the left shoulder still in progress it would seems. one could trade long with stops below the recent low. taking out the recent low invalidates this…for purely contrarian reasons its worth a shot as the media is so bearish the dollar again?

  5. alain

    I am not following the trading news regularly as they disturb more than they help, I am more back ground reports. But I assume that the almost 70bn of money taken off the market – paid back by banks have an influence. From a technical point, we touched a support. But view that treasury doubled the money in circulation over the past 18 months (inserted as much as they did since their creation in 1913?) is self speaking. Yet the first countries devaluated their currencies – more will follow. There is no fundamental reason I know spelling different than bearish on USD.

  6. WHC Bassetti

    not that i know of, but there is obviously something to it. especially and obviously in burst bubbles. an interesting question. how speed of ascent relates to speed of descent.

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