China’s stock market crashing; time for panic or restraint

Tuesday, Oct 06 2015 by

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Fortune always fights on the side of the prudent.Critias

Lately, one cynic after another, some of which claim to be experts are all marching to the same drumbeat.  The Chinese economy is in trouble; the Chinese markets are going to continue crashing. The Shanghai index experienced an astounding advance over a brief period of time and so it should not have come as a surprise that such a stupendous rally would culminate with an equally brutal correction. The Doctors of  gloom and doom are over doing it and this was our recent response to our subscribers.

Not much to add here, except that it followed the project path. The fear has not peaked yet, so that means more downside is to be expected. It traded below 3000, and as long as it does not close below 3200 on a monthly basis, the bottoming action will gain traction. As it has already traded below 3000 and fear levels have not hit the extreme ranges yet, a monthly close below 3200 will drive this below 2800.  If the Chinese economy is dead, then there are no words to describe our economy. Our economy is based on smoke and mirrors. Alchemists are trying to create something from nothing, and so far the cocaine sniffing crowd is buying this. Market update Sept 1st, 2015

Stephen Roach the former manager of Morgan Stanley Asia seems to concur with this assessment. He made the following proclamation on the 3rd of September 201,.

Growth in China has slowed,  “but it's not going in for a crash...and that will present, I think, an opportunity for shares to re-evaluate the China threat, big time."

When the crowd panics, it takes a bit of time for the dust to settle down. Their confidence has been shaken, and they are letting their emotions do the talking.  When emotions take over, the reaction is almost always overdone.  When this occurs, the level-headed  investor is provided with a once in a life time opportunity to purchase shares in top rated companies for a fraction of their true value.  Prudence is still warranted, but for the brave of heart and  those that have a long-term view, opening positions in companies such as NTES, BABA, SOHU, HNP, CHA, etc., will most likely prove to a good call.  

Our V indicator is signifying that we are going to witness volatility on…

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Disclaimer:  

Each publication is intended solely for information purposes and is not deemed a prospectus or solicitation of orders, nor does it purport to provide Individual investment or business advice. Trading carries a risk of loss, and traders should check with their professional advisers before taking any action

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NetEase, Inc. (NetEase) is a technology company. The Company operates an interactive online community in China and is a provider of Chinese language content and services through its online games, Internet media, e-mail, e-commerce and other businesses. The Company operates through three segments: Online Game Services; Advertising Services, and E-mail, E-commerce and Others. Its online games business primarily focuses on offering personal computer (PC)-client massively multi-player online role-playing games (PC-client MMORPGs), as well as mobile games to the Chinese market. The NetEase Websites provide Internet users with Chinese language online services centered over three core service categories, which include content, community and communication. Its online advertising offerings include banner advertising, direct e-mail, sponsored special events, games, contests and other activities. It offers free and fee-based premium e-mail services to its individual users and corporate users. more »

NSQ Price
$270.16
Change
-0.1%
Mkt Cap (£m)
27,839
P/E (fwd)
20.1
Yield (fwd)
1.0

Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People's Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com). more »

NYQ Price
$179
Change
1.1%
Mkt Cap (£m)
2,948,765
P/E (fwd)
22.9
Yield (fwd)
n/a

HUANENG POWER INTERNATIONAL,INC. is a China-based company principally engaged in the development, construction, operation and management of power plants. The Company mainly operates through the generation and sale of electric power. The Company also provides supply of heat. The Company operates its business both in domestic market and to overseas market. more »

NYQ Price
$22.25
Change
1.3%
Mkt Cap (£m)
6,938
P/E (fwd)
9.3
Yield (fwd)
6.9



  Is NSQ:NTES fundamentally strong or weak? Find out More »


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