13 April 2012

DOW & A50


Dow weekly chart indicates the recent high above 13000 has an rsi that is substantially lower than the last time it hit slightly below 13000, this would not warrant a sustained rally.

Also the A50 etf chart  indicates that China shares wont head any higher even with the recent rebound. The chart indicates there is over a two year period [Mar09-Jun11] of unloading China  stocks, so how would you expect a strong rally of China stocks before a drastic fall occurs. One should take every rally above 11.20 to unload China stocks.

The Shanghai Composite Index is very similar to this chart, so print a chart of 000001.ss on finance.yahoo.com to verify where the neckline is so you will know when to unload your stocks.