An Incredible Tale of two Greats!
On Monday 30 Aug 2021 10.48pm, I emailed Clients my latest post titled 'An Incredible Tale of two Greats!'. Pls find below some excerpts from my writeup. More importantly, I shared with my clients what are the 2 possible actions that investors should consider in view of such unprecedented action from the Chinese Government:
Of US markets:
'..another month, another free-wheeling SPX new highs & another draconian policy from China! What an incredible tale of two Greats!..'
'..a quick recap on what I said in my 16 Jun writeup - "Currently a bullish Cup & Handle pattern has manifested itself & an authoritative breakout will likely see SPX targeting 4420+/-." On 26 Jul, SPX closed at 4422 and hovered below 4422 for the next nine market days straight..' '..bcos the tier 2 & 3 US stocks broadly aren't showing that same type of bullish & steady momentum of those mega caps stocks, traders are finding it harder to make decent profits. The situation I'm seeing now reminds me of those price action extensions..' Of Chinese Tech stocks:
'..the 2021 Chinese tech stocks massacre started off as a small wave in the cancellation of Ant Financial IPO which then rolled on to become a tsunami of epic proportions that is today. The market was led to believe that an overconfident Jack Ma wrongly stepped on..'
'..now the market talk is how Xi is throwing one big stone (i.e. using 'national policy objectives' & 'common prosperity' as a front) to kill many birds, ie. all these 10 months worth of policies are actually 'designed' to bring down as many of the..'
'..you may be surprised to see that each of them (Chinese major indices) only dropped 5.6%, 2.8% & 8.9% respectively, not exactly the sort of bear market decline (>20%) the headline news are telling us now.'
'..since this is an exogenous event and no one knows when the regulatory actions may ease or end, I recommend two possible actions - 1) avoid taking..'.
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Still undecided? To aid you in your decision, pls feel free to check out my track record here!
Thank you & as usual, Live Long & Trade Well! Thomas Ng, CMT Principal Trading Representative 首席股票经纪 www.thom-ng.com
Chart source: tradingview.com / stockcharts.com