An idea on recent change of CN Stock Market

Wed Oct 02 2024 00:00:00 GMT+0000 (Coordinated Universal Time)

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.