“Gents - any technical thoughts on China with SHCOMP and other relative china indices at this key price-action juncture?”
Yes, the Shanghai Composite Index is oversold, somewhat overstretched relative to the 200-day MA, near previous lows and the psychological 2000, but we have yet to see an upward dynamic to indicate that a rally is commencing. My guess is that we will see a rebound before long because the Bank of China pumped in some liquidity today. Uncertainty abounds but this Index is cheap at a current p/e of 10.12 and a yield of 3.13%.
Here is a good interview on China from Bloomberg.Back to top