Shanghai confirms bear market

Dow Jones Shanghai Index breached support at 320, confirming the earlier signal at failure of 330. Reversal of  13-week Twiggs Money Flow below zero warns of rising selling pressure.

Dow Jones Shanghai Index

* Target calculation: 330 – ( 390 – 330 ) = 270

3 Replies to “Shanghai confirms bear market”

  1. The U.S. Stock Market is falling because liquidity had dried up. We are entering a redux of 2008. The buy-and-hold retail investor has lost anywhere between 30-50% of their portfolio value. They will not be venturing back into the stock market in the forseeable future. The strategy among retail investors now is return of principle, instead of return on principle. They are now content with a .6% return on CD investments at their local bank.

    I have been trading equites and futures for over 30 years, and all strategies have failed. I am still flat for the year, but it has been the most confounding market in my lifetime. I do have physical gold and silver holdings that I purchased in the early 2000s and those have been my best investments.

    RJ Lewis, CTA
    Houston, TX

  2. Thank you Colin,

    How useful to be able to analyse the charts of such markets as the Dow and S and P (and of course our Austraian markets) live and the FTSE and China even though they are delayed.

    I was born during the Great Depression and history tells us that toxic debt has to be cleansed before recovery takes place.

    I cannot remember my Griffith High School economics teacher (blessd him) ever recommeding the printing of money or “give away” type stimulus measures as construcive economic tools. .

    Brian Mills

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