The Hong Kong protests are in the 16th week. Interestingly, the 70-year celebration of communism and the founding of the People's Republic of China occurs on October 1st only nine days away. it is surprising that the Beijing commie leadership has not cracked-down on the Hong Kong demonstrations harder. The protests are only becoming more violent. President Xi does not want the celebration sullied by Hong Kong. Either Chinese-backed forces have to go in and clamp-down hard on the Hong Kong demonstrators, or, Xi will lose face during the festivities. It is hard to brag about communism when you have Hong Kong seeking freedom from dictator Xi.
No doubt an interesting week is ahead for Hong Kong. Protesters are throwing bricks, stones and petrol (gasoline) bombs at riot police. The police counterattack with rubber bullets and tear gas. The police threaten to use real live ammunition. The conflict will take a tragic turn if a human is shot.
The Beijing leaders are likely pulling their hair out in fighting the budding revolution since the protesters have gotten smart over the last few weeks. Demonstrators pop up and wreak havoc at a given location but then melt back into the crowd and disappear. The overall situation is deteriorating. This morning, protesters are stepping-on, spitting-on and then setting ablaze the Chinese flag. XI is likely blowing a gasket with smoke coming out of his ears watching that occur.
Hong Kong does not want to be under China's control. The protesters have several demands including pulling the extradition bill (the Hong Kong government announced plans to do so but demonstrators consider it too little too late), calling for the resignation of Chief Executive Carrie Lam who is a puppet of the Beijing leadership, granting amnesty to the protesters arrested, conducting an independent investigation into police brutality (the Hong Kong police are carrying out their own internal investigation) and voting for political candidates that Hong Kong picks not mainland China (universal suffrage).
If Xi does not act this week against the Hong Kong protesters, he will wait until after the commie celebrations and then he will crush the movement in force just like the Umbrella Revolution was crushed. The Hong Kong demonstrators made it clear where they stand after Lam said she would pull the extradition bill. The response was that the gesture was like 'putting a band-aid on rotting flesh'.
The SSEC, China, chart shows the golden cross occurring in March forecasting happiness ahead although price is basically at where the cross occurred. If you are bullish China, you want the two-leg bull flag to play out (green lines). Price is in its sideways to sideways lower consolidation flag right now. A break out higher will target 3550 (first leg is 2450 to 3250, a difference of 8 hundo, so a breakout higher from 2750, creating the second leg, is a target of 3550).
If you are a China bear, you want the descending triangle to play out (red). Going with the April vertical side of the triangle at 2850 to 3250, say 4 hundo difference, would target 2450 on the downside if the 2850 gives way. The communists are managing their way through the sideways purple channel at 2850-3050. Bulls win big above that 3020-3050 area and price is knocking at this door. Bears win big if they spank price lower, which would be a failure at resistance; then they will gun for 2850.
The PBOC (China's central bank) has been goosing stocks all year long. Note the failure in August that was stick-saved by the communist government with more triple R cuts (to boost bank lending) and other targeted stimulus. The central bankers are the market.
The HSI, Hong Kong, chart shows the death cross occurring in August forecasting doom and gloom ahead. Of course price bounces when the death cross occurs, which is expected, and price will remain weaker as long as the death cross is in play. The red downward-sloping channel remains in play. Price is testing the 20-day MA support at 26391 so the HSI is making an important bounce or die decision to begin the week.
Hong Kong citizens are boycotting pro-Beijing stores at the malls. There is long-term damage being done to the relations between Hong Kong and China that will last at least for a couple generations.
So the world awaits for President Xi's response to Hong Kong. If he acts this week against the demonstrators and people become bloody and hurt, Xi will look like an evil, murderous communist dirtbag, which is the same as it is now, or, if he does not act he will look weak. There are many other top communist politicians in Beijing ready to stick the knife in Xi's back if they get a chance. Xi paces the floors of the palace all night long knowing that this week may determine if he remains the dictator-for-life in China, or not. Fires are burning in Hong Kong streets. The clock is ticking; tick-tock. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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