The Shanghai and Shenzhen 300 Index is taking a beating.
http://www.bloomberg.com/apps/news?pid=20601087&sid=auzh7sAKqDDM&refer=home
Time to short some overvalued chinese stocks? Here are some possible chinese shorts for today.
CHINA (PE 84, climb in PPS last couple of days and weeks.)
SINA (PE 48 fast climb in PPS last couple days)
JADE (fast climb in a short period of time may go reverse.)
BIDU (PE of 164!)
SOHU (Chart near resistance may pullback with this market correction in china.)
"The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, plunged 8.8 percent to 2771.79. Today's tumble was the biggest since Feb. 18, 1997. The Shenzhen Composite Index, which covers the smaller one, dropped 8.5 percent to 709.81. The measure has surged 29 percent this year. "
Chinese stock market is taking a beating... Im wondering how the markets in the U.S. are going to take this. This is a serious matter and can cause a big change in the world markets if the trend does not turn around.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aBV17RWjRjJk&refer=home
Ohh I think the futures say it all. Going to be an ugly open on Wall St. I always check the world indices when I wake up in the morning...jaw DROPPED when I saw Shanghai this morning :o
China...
The Shanghai Composite continues in a strong primary up-trend. The medium term target is 2700, calculated as 2550 + [ 2550 - 2400]. Bearish divergence on Twiggs Money Flow (21-Day) is not cause for concern unless the indicator reverses below 0.1.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48304)
China
The Shanghai Composite Index continues in a strong primary up-trend. Breakout below the trend channel, or Twiggs Money Flow (21-Day) reversal below 0.1, would warn of a (secondary) correction.
China: Shanghai Accelerating Up-Trend...
The Shanghai Composite Index continues in a primary up-trend. Breakout above the trend channel warns that the trend is accelerating — and could lead to a blow-off. Twiggs Money Flow (13-Week) confirms strong buying pressure.
China has come in for criticism recently for the rapid expansion of its money supply — M2 grew by 26 percent in the last 12 months. But this structural instability will take time to translate into higher inflation and a slow-down in bank lending before it impacts on the stock market.
China
The Shanghai Composite Index continues in an accelerating up-trend (sometimes referred to as a "runaway trend"). Rising Twiggs Money Flow (13-Week) confirms strong buying pressure. While the up-trend may continue for some months, the absence of strong corrections make market support increasingly precarious.
China...
The Shanghai Composite respected resistance at 2700. Reversal below the rising trendline would warn that the bear rally is ending. 63-day Twiggs Momentum Oscillator holding below zero indicates continuation of the primary downtrend.
Target calculations: 2350 - ( 2700 - 2350 ) = 2000
China: Shanghai Composite Index...
The Shanghai Composite Index is testing resistance at 2700. Breakout would signal an advance to 3000*. Rising Twiggs Money Flow (13-week) above zero signals buying pressure. 63-day Twiggs Momentum recovery above zero would strengthen the signal.
Target calculations: 2700 + ( 2700 - 2400 ) = 3000
China...
The Shanghai Composite Index continues to test resistance at 2700, but the Shenzhen index is rallying strongly, causing the broad DJ China index (below) to advance towards 380. Rising Twiggs Money Flow (13-week) signals buying pressure. 63-day Twiggs Momentum recovery above zero strengthens the signal.
Target calculations: 2700 + ( 2700 - 2400 ) = 3000
China...
The Shanghai Composite Index encountered stout resistance at 2700. Reversal below 2600 would warn of another test of primary support at 2300. Bearish divergence on Twiggs Money Flow (13-week) signals selling pressure.
Target calculations: 2700 + ( 2700 - 2400 ) = 3000
China...
The Shanghai Composite Index recovered above 2600 Monday, strengthening support. Bearish divergence on Twiggs Money Flow (13-week), however, continues to warn of selling pressure. Reversal below 2550 would signal another test of primary support at 2300. Breakout above 2700 is less likely, but would offer a target of 3100*.
Target calculations: 2700 + ( 2700 - 2300 ) = 3100
China...
The DJ China index is testing resistance at 380. Rising Twiggs Money Flow (13-week) signals strong buying pressure. Breakout would offer a target of 480*. Reversal below the rising trendline is unlikely, but would warn of another correction.
* Target calculations: 380 + ( 380 - 280 ) = 480
China: Shanghai Composite Index
The Shanghai Composite index retreated below 2800 and is testing 2700 Monday. Expect a test of 2600*. Declining Twiggs Money Flow (13-week) warns of selling pressure.
* Target calculations: 2800 - ( 3100 - 2900 ) = 2600
Chinese bubble...
China is expected to continue monetary tightening in an attempt to control inflation fueled by its massive 2008 stimulus program. This will impact not just on local markets, but on major resource producers such as Brazil and Australia.
China: Shanghai Composite Index...
Chinese exchanges were closed last week for the Lunar New Year. Monday, the DJ China Broad Index is testing the declining trendline, but Twiggs Momentum (21-day) below zero warns of a down-trend; further troughs below zero would strengthen the signal.
China: Shanghai Composite Index...
The Shanghai Composite Index penetrated its declining trendline, warning that momentum is slowing, while Twiggs Money Flow respected the zero line, suggesting a bottom may be forming. But the primary down-trend continues — until we see a breakout above 3150.
* Target calculations: 2800 - ( 3100 - 2900 ) = 2600
China: Shanghai Composite Index...
The Shanghai Composite Index rallied Monday despite a 0.5% increase in bank reserve requirements — further evidence that we are witnessing a bottom. But the primary down-trend continues — until there is a breakout above 3150.
* Target calculations: 2800 - ( 3100 - 2900 ) = 2600
China: Shanghai Composite Index...
The Shanghai Composite Index is more positive, testing medium-term resistance at 2950. Breakout would mean a test of 3150 — and breakout above 3150 would signal a primary advance to 3500*.
* Target calculations: 3100 + ( 3100 - 2700 ) = 3500
China: Shanghai Composite Index...
The Shanghai Composite Index broke resistance at 2950 Monday and is headed for a test of the late 2010 high at 3150. Penetration of that level would signal a primary up-trend, with a medium-term target of 3500*.
* Target calculations: 3100 + ( 3100 - 2700 ) = 3500
China: Shanghai Composite Index...
The Shanghai Composite Index is testing medium-term resistance at 3000; breakout would signal continuation of the advance. In the long term, breakout above 3150 would confirm a primary up-trend, while failure of support at 2650 would signal a down-trend. Rising 13-week Twiggs Money Flow indicates buying pressure.
* Target calculations: 3100 + ( 3100 - 2700 ) = 3500
China July exports hit record high, surplus swells...
On Wednesday August 10, 2011, 4:06 am EDT
By Koh Gui Qing and Zhou Xin
BEIJING (Reuters) - China's exports hit a record high in July as shipments to Europe and the United States proved surprisingly buoyant, allaying concerns that debt problems abroad may hold back the world's No. 2 economy.
But analysts warned it was too soon to declare that Chinese exports can hold up in coming months as debt worries, sluggish consumer spending and now wildly volatile financial markets plague its two biggest customers.
"Both imports and exports are likely to grow at a slower pace in coming months," said Li Xunlei, an economist at Guotai Junan Securities in Shanghai. "The global financial market turbulence may lead to a contraction in external demand."
July exports rose 20.4 percent from a year ago, the strongest gain since April and surpassing economists' median forecast for a 17.4 percent rise, data on Wednesday showed.
Imports were roughly in line with expectations, rising 22.9 percent in July from a year earlier, the General Administration of Customs said. Economists had forecast growth of 22.3 percent.
"China's trade sector is still facing great uncertainties," said Nie Wen, an analyst at Hwabao Trust in Shanghai. "Developed countries are forced to take austerity measures, and emerging markets may tighten (policy) as well to tame inflation."
Indeed, just hours earlier, the U.S. Federal Reserve took the unprecedented step of promising to leave interest rates near zero for at least two more years, painting a gloomy picture for the world's largest economy.
Noting that monetary policy risks are shifting to supporting growth from fighting inflation, China has signaled it may pause its 10-month policy tightening campaign for now.
Wednesday's data suggested sluggishness in the U.S. and European economies has yet to put a big dent in Chinese export growth, as many investors had feared. Instead, robust U.S. and European shipments helped pushed the value of China's monthly exports to a record high of $175.1 billion.
Although annual growth in Chinese exports to the United States in July was marginally weaker than June at 9.5 percent, the total value hit the year's high of $30 billion.
Annual growth of exports to Europe nearly doubled to 22.3 percent, lifting the value of sales to $35.1 billion. Export growth to Japan also picked up sharply.
BHP Billiton (ASX:BHP.AX - News; LSE:BLT.L - News), the world's biggest miner, said on Wednesday it expected weak growth in Europe and the United States to persist for many years as they deal with their debt crises, heightening the reliance on China's fast-growing economy.
PRESSURE ON YUAN TO RISE
Other data this week showed that China's inflation hit three-year highs of 6.5 percent in July, and some officials have said that it has likely peaked.
But underlining the fine balance that Beijing has to tread between managing growth and inflation, July's brisk exports caused China's trade surplus to balloon to $31.5 billion, its widest since January 2009.
That could fuel price pressures at home and more criticism from its trade partners abroad that Beijing is keeping its yuan currency suppressed to sell more exports at their expense, allegations China has always denied.
As part of Beijing's policy to prevent the yuan from rising too quickly, it buys dollars earned from trade revenues. But Beijing injects more than 6 yuan into China's banking system for every dollar it buys, adding to a surfeit of cash that fans inflation.
So even if Beijing is reluctant to tighten policy now, it may need to step aside nonetheless to let the yuan climb more briskly if it wants to keep a lid on prices, analysts said.
"China's monetary policy has been kidnapped by foreign capital inflows," said Zhang Lei, an analyst at Minsheng Securities in Shanghai, referring to the widening trade surplus.
"Yuan appreciation is still one important option."
"CHINA IS OK"
To be sure, all signs suggest that China's economy has taken the steady policy tightening in the past year well in its stride, with its red-hot growth moderating only slightly so far.
Most market watchers continue to predict a soft economic landing, with growth easing to 8-9 percent, rather than a sharp decline.
Many economists agreed that the latest trade data showed China's growth engine is whirring along, with domestic demand solid.
Retail sales climbed 17.2 percent in July from a year earlier, albeit not quite as much as analysts had expected, while car sales rose 6.7 percent, picking up momentum from the previous month.
Imports of raw materials such as copper and iron ore saw strong gains from June, and the recent plunge in global commodity prices is likely to stoke more Chinese buying.
That should comfort investors looking to China to pick up some slack in global demand as other major economies sputter.
And China's relatively low -- albeit rising -- production costs could keep its exports competitive when times are rough, analysts said.
"In the past couple of months, the U.S. economy has been turning down, but China's export growth has held out," said Bank of America-Merrill Lynch's Lu.
"This shows China's economy is okay."
Beijing, which has repeatedly voiced confidence in China's growth in the past year, reiterated the line this week, though it has been clearly rattled by heavy selling in financial markets after the United States lost its top-rated credit rating on Friday.
Premier Wen Jiabao said on Tuesday that China's economy continues to show good growth momentum. But in a sign Beijing would rather err on the side of caution, he signaled China may soften its strike against inflation.
An official Chinese newspaper also said as much on Wednesday by declaring in a front-page editorial that Beijing would refrain from raising interest rates for now due to the rout in global markets.
However, China top economic planner stressed that inflation dangers remained, including the possibility of a new round of monetary easing in the United States which could fuel fresh price pressures.
(Reporting by Beijing economics team; Editing by Ken Wills & Kim Coghill)