From the lofty 6,000+ ....
China's Shanghai Composite Index, tested the psychologically
im****tant 3,000- mark last week. The Chinese government deep
-ly fearful of a market catastrophe and the ensuring unrest,
right before the Olympic Games, took market sup****t measures
to calm the frayed nerves of small investors.
SSE made an abrupt V-turn. And is now on its way to 4,000.
Nervous shorts should take profits and cover now. It isn't a
bad idea to wait for better entry point around 4,000 and re-
short the China market. Short term, the government will take
any measure to calm the small investors. It is futile to go
against the Chinese government. Post Olympic Games, however,
China is facing insurmountable economic headwinds. For which
the SSE is but a forward indicator. The next leg down, will
place the China's SSE squarely in the prestigious, exclusive
club of Sweet 16,
Quite possibly, it will he heading for 1,600 ....
FYI: For the more adventurous risk takers, the best way to
short the China market is an ultra short US ETF which
is designed to gain two points for every single point
drop in the SSE. Enjoy. :)
Regards,
Albert K. Fung
Casa Tres Palmas, Santa Ynez, California, USA.
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