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May 31, 2007


A Look at the Break in the Shanghai Market

Here’s a look at the intraday chart of the Shanghai Composite Index over the last five days. You can see the dramatic gap down on the morning of the 30th following the news of a higher stamp tax. The trend has clearly flipped down on the smaller time frames and short-term traders would be looking to short the intraday rallies. It’s impossible to go short in China, but you know what I mean.

shcomp

Here’s bellwether CITIC Securities’ intraday stock chart following the break. Any day trader would be stalking this doggy from the short side — you’ve gotta assume there are a ton of people trapped long above 55 and they’re scared.

600030

Related: CITIC Securities and the Manic Manicurists

This entry was posted on Thursday, May 31st, 2007 at 11:01 pm (utc+8) and is filed under China_Investing.

3 Responses to “A Look at the Break in the Shanghai Market”

  1. pete said:
    June 1st, 2007 at 7:46 am

    getting worried the locals will lynch the white devil if their market crashes?

  2. C. Maoxian said:
    June 1st, 2007 at 8:01 am

    pete: Nah, but I worry every day about the obscene gap between rich and poor here.

  3. Maoxian » Pigs Get Slaughtered said:
    June 4th, 2007 at 5:22 pm

    […] Related: A Look at the Break in the Shanghai Market Cat:  […]

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