Recently China Stock Market went crazy.

Buy now, and sell it when the index reach about 3500, and sell.

The current index is 3336.5 on 30 Sep 2024, with 21%+ increase in previous 5 days.

We do not know that what will happen in the future.

• If it is able to reach 3500, the earning rate will be (3500 - 3336.5 / 3336.5) = 4.8%, which will be considered as a good profit in a week.
• If it is going down to 3000, the loss rate will be (3336.5 - 3000 / 3336.5) = 10%.

A simple idea for this trend.

So the selling point is 3500 and 1 week time frame, which is later to reach. The stop loss point is 3000 or 1 week time frame, which is earlier to reach.

What I did

Update on 08 August 2024

I purchased CAF on October 2, 2024, at a price of $14.52, and sold them on October 7, 2024, at $15.40.

The ROI is 6% (15.4 minus 14.52, divided by 14.52).

The Shanghai Stock Index reached 3489.78 on October 8, 2024. I didn’t wait for it to reach 3500 because the highly related index HSI and other China ETFs have a strong sell signal.

Conclusion

This is one of my short-term technical investment analyses, and I’d say the 6% return is a success.

I thought I’d give you a bit more background. As an unprofessional investor, most of my technical investment actions have failed, while most of my fundamental analysis have succeeded. For example, SOXL gave me a 40% loss, and I still haven’t recovered.

Because I’m based in the Asia-Pacific region, the US market is closed during my local trading hours. This is a significant challenge. I can only place orders before or after the market opens based on my daily technical analysis.

Idea 2

There is another idea because Shanghai Stock index is usually below 3000, and now it is about 3300, a potential trading idea is to buy YANG, leveraged Bear ETF, hold it until the point reach below 3000.