When folks love the Shanghai composite, they really love it. The recent vertical move up is
right in there with the bubble inflation starting in late 2006 and the high speed run - up
starting in late 2009 when the big credit stimulus package was announced. Shanghai Daily
The RSI has topped 90 in the recent skyward move and that by the Shanghai's gaudy standards
is an overbought of consequence. Note as well that the index is now testing longer term price
resistance in the 3000 - 3200 range.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!