Saturday, April 11, 2009

Shanghai Composite Index


A quick look at the weekly chart of the Shanghai stock market shows us that:
1) This index has crossed the 40 weeks (=200 days) moving average to the upside at the end of March '09
2) This is a major long-term buy signal
3) Last time this happened was at the end of 2005. After that, the index stayed above that moving average during the next two years (2006 and 2007)
4) My call? I will buy this market through the FXI ETF and hold for the long-term. China will be the first country to come out of this crisis.
5) FXI is the ticker of the iShares FTSE/Xinhua China 25 Index Fund ETF listed on the NYSE.



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