shanghai is just amazing, up 2.27% to new record high.

SSE Composite Index (Shanghai:000001.SS) Delayed quote data Edit
Index Value: 3,398.95
Trade Time: 3:00AM ET
Change: Up 75.36 (2.27%)
Prev Close: 3,323.585
Open: 3,333.422
Day's Range: 3333.26 - 3399.51
52wk Range: 1,446.99 - 3,334.22

 

when you see one of those 5% sell offs, do not be surprised.

 

http://bigpicture.typepad.com/comments/technical_analysis/index.html

 

China markets are running on fumes. Next 10% drop in one day is coming pretty soon... both to China equity markets and US markets too. My indicators say sell this week...

 

10% should not surprise anyone. Im sure the next 10% drop will take it back to around 3000, next stop would be a STRAIGHT RUN to 4000 by mid 2007 and 5000 by end of 2007.

 

EPS growth rate at 40-60%. I could say the index is more likely to get another 100% return within 3 months.

 

Buy all dips.

 

But how does one buy the dips in China?
The government is still not allowing foreigners/foreign banks to do business in their country.

And the banks/brokers dont even want to because chinese stockmarket is corrupt and nonregulated.
Buying illiquid ADRs or the index future is not for me.

 

Curtis Faith makes a good observation in The Big Picture comment section about price curves.

 

"The Chinese market will keep growing and growing...and then stop growing at about 5 feet."

-Andy Richter