SSEC has been crouching just below 2700 level for the past few weeks. The two possibilities in my view are shown on the chart. Whichever the case, i'm looking for an initial target between 2900-3060 in the short-to-medium-term, and possibly even higher in the medium-term. Depending on your chosen vehicle for trading the SSEC, you may be outperforming big time, especially if you are in a small-cap focused etf or fund (Check out the FTSE Xinhua charts below).
(FTSE Xinhua) All-Share Index vs China A50 Index vs Small Cap Index
China A50 approximates the performance of SSEC.
The Small Cap Index has already exceeded its all-time-highs! So, it pays to know your etf/fund. Please do your own research on performance, as i am unable to provide specific fund/etf recommendations.
The long-term outlook for China is not necessarily all bullish. For my longer term view on the Shanghai Composite, check out this earlier post: "Shanghai Composite: Why i am BULLISH medium-term!".
So, where are the long-term Bull Markets?
If you wanna find out where the Asian Bull Markets are, I highly recommend this excellent copy(older edition) of the Asian Pacific Financial Forecast, from Mark Galasiewski of EWI - can be downloaded for free - covering the major Asian markets.
Enjoy!
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