While a lot of investors may celebrate shanghai reaching a new 7 years high of 3800, we think that it might just have reached a deadly cliff. The more it goes up, the more this rubber band effect might cause it to drop hard.
3800-4000 is the distribution resistance zone.
Our chinese interview in December last year mentioning about our target of 3800 this year -
http://www.danielloh.com/2014/12/daniel-loh-1211-fm958-2015.html
Although we still think that this bull run will still continue for a few years, we think it needs a correction badly.
We are targeting a 10-15% retracement and a 9 months consolidation.
For those who are still holding on to your China shares, it is advisable to do a bit of profit taking. And please do not buy anymore Shanghai A shares or H shares.
Some investing friends who invested in China told me that some of the 创业板 a.k.a. technological companies in China has gone up 10-20 times. Let me tell you my opinion, they might suffer from a blumont collapse soon! The more a stock is speculated without fundamental earnings, the more it will fall.
Please avoid China shares like a plague now!
Rgds
Daniel
www.danielloh.com
Although we still think that this bull run will still continue for a few years, we think it needs a correction badly.
We are targeting a 10-15% retracement and a 9 months consolidation.
For those who are still holding on to your China shares, it is advisable to do a bit of profit taking. And please do not buy anymore Shanghai A shares or H shares.
Some investing friends who invested in China told me that some of the 创业板 a.k.a. technological companies in China has gone up 10-20 times. Let me tell you my opinion, they might suffer from a blumont collapse soon! The more a stock is speculated without fundamental earnings, the more it will fall.
Please avoid China shares like a plague now!
Rgds
Daniel
www.danielloh.com
