From a purely technical perspective, current trading volume is too small to lift indexes upward further.

Samuel Chien

Categorized in : Industrials

Profit growth is weak, and doesn't justify current valuations, es... by Samuel Chien

Profit growth is weak, and doesn't justify current valuations, especially for small-caps.

SSEC's 2,850 low is a level worth defending for the National Team, and a level where investors should bet for a decent rebound.

This level is unlikely to be breached in the short term, as the market has dropped so much and so fast.

Theoretically, the move would make yuan assets more attractive to global investors over the long term.

The correction, which is technical in nature, is natural after the strong rebound we saw recently. Many stocks were up by their limit for several consecutive days.

Anti-corruption is good for the market in the long term. by Samuel Chien

Anti-corruption is good for the market in the long term.

The market will continue its downward trend .... The government doesn't have enough money, or willingness to buy shares now.

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Chinese investors move in herds. After panic selling drove the market down to the extreme, prices are now starting to move in the other direction.

Main indexes will rise. For the Shanghai Composite, the area below 4,500 is relatively safe now, i have ample cash at hand, and surely will buy stocks this week.

Main indexes will rise. For the Shanghai Composite, the area below 4,500 is relatively safe now, i have ample cash at hand, and surely will buy stocks next week.

The market is still fragile because the clean-up of gray-market margin financing is still going on, and last week's market tumble triggered some margin calls and some investors are under pressure to sell.