Funny, Yesterday we were looking at a technical target of the China Hang Seng, and then last night I saw Bloomberg Asia talking about a possible, "technical bounce" on the Hang Seng - after what they're calling a "route" - and that's exactly what we saw overnight.
I suppose the hedge funds - behind the scenes at Bloomberg - are seeing the same thing I'm seeing, but they could at least give credit where credit is due.
Word of warning; don't just go piling into China. Wait for an overshoot (shakeout), beyond the target.
$HSI China - 30 min chart - simple bearish channel
Speaking of overshoots:
Tech continues to rally, and for no other reason than it was oversold, as I pointed out on Friday, plus Options Expiration Friday had passed, so the rats who control this market are allowing tech to run - as I alluded to yesterday. I would not be in a hurry to chase tech anymore than I'd be rushing in to buy Chinese equities.
As I've pointed out in previous blogs; China leads tech, and that's exactly what we've seen over the past few weeks.
$NDX - 60 min. chart - I'll be watching for this suspected suckers rally in Tech to top out today
It's possible that tech continues to bounce out of its oversold condition, but I don't like the low volume, or the gap that was left behind yesterday.
Take Care,
AA
No comments:
Post a Comment