“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Sunday, 9 March 2014

CHINA'S RED FLAG

There is a big issue with the pattern that China's market is forming in an EW format.  We cant use this alone to finalize an analysis, but if we did this count is the worst count you can get.  We don't know when it would reach a potential 830 target on the Shanghai Composite, but with the ever small group of bears out there looking at a down trending economy that wont end till 2017.  I would gather that this would be in line with that outlook.  We just need to ask ourselves which would break the camels back.

We know every country has something that could kill its economy, whether its QE or just full on Credit loans, Real Estate or War.  One thing is for sure, with this setup it wont be long before a trigger happens.

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