Last Wednesday, we did advise to look at Shanghai Composite after it dropped due to the disappointment in the Third Plenum meeting. We did mention that 2000-2050 is the targeted zone we are looking at. But if things get better, a breakout off 2100 is a good point to enter! Indeed, things get so good that after it breaks off 2100, it zooms forward.
Check out our last post:
Today, Shanghai composite reached 2193 within a short few days. Congrats for those that have followed our call!
If you still want to enter now, I suggest you need to wait. Although we remain slightly bullish, we think that price is already too high.
For those that are in a profit, you might want to shift up your stop loss to a profitable region. An example may be to shift it to 2180. This is money management rule number 2. Rule number 1 is to guard your downside. Rule number 2 is to guard your profits!
Have a good trading week!
We think that with the Black Friday coming next Friday, there is still room for US market to increase! Let us celebrate Thanksgiving and hope the Americans buy lots of presents and push up the index.
P.S. Black Friday is not a market crash but it is a joyous day for shopping after Thanksgiving. Americans call it Black Friday. It is also known to be the start of the seasonal Christmas Rally.