Tuesday, July 7, 2020
SSEC Shanghai Index Daily Chart; Price Goes Parabolic
As the number of coronavirus cases fly past 200,000 per day around the world, China, that unleashed the deadly COVID-19 pandemic on the world, skates away from the trouble with a near +30% gain in the SSEC (Chinese stock market) in less than four months. China will need to pay the world for their nefarious deed.
The chart above shows the wild +6% gain in the Shanghai on Monday and today it is up again with a marginal 12 point gain to 3345. The parabolic spike is phenomenal. It is a casino chip. Just as Keystone has pointed out the low CPC and CPCE put/call ratios here in the states that signal a top at hand, the bullish sentiment is even more over the top, if that is possible, in China.
Regular Ma's and Pa's are scrimping together every last renminbi (yuan) they can find to put it in the stock market for quick gains. It is a frenzy and this stuff never ends well. The dirtbag communist leadership is concerned now warning the public that stock prices are running too high too fast. People, especially those of modest means, are worried they will miss out on the next bull run. These are the folks that always get hurt the most.
Chinese investors and traders are touting the PBOC's (China's central bank) ability to provide more monetary stimulus and expand credit, so the party goes will last forever. Sound familiar? In the states, stocks are bid higher and higher for over 11 years running on the faith and confidence that the Federal Reserve can print money forever. Make sure you have plenty of handkerchiefs and tissues available because this stuff ends in tears. For now, China wants to rock and roll all night and party every day. Whhheeeee! Whoooopppie!. Praise, Holy Honor and Glory to the Global Central Bankers Our Modern-Day Money God's. Kneel in Their Presence! Worship Their Power! 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.
Note Added Thursday Morning, 7/9/20, at 5:19 AM EST: The Chinese euphoria continues. Wa sai! Tuesday is a 58 point pop, +1.7%, to 3403. Yesterday is a 42 point gain, +1.2%, to 3445. The Chinese are tripping over each other to get into the stock market. Rickshaw operator Chang says he took his entire life savings and placed it in the market. Chen echoed the positivity and said he took all of his grandmother's retirement money and put it in Apple and Tesla stock. SSEC price has blown up through the upper standard deviation band with the parabolic rocket launch and is at prices not seen since early 2018 over 2 years ago. However, that ended in tears with a one-year selloff.