Surprise surprise. China is about to become the most powerful stock market in the world. It may happen any time, it may happen only in a year from now. But one this is clear: China’s stock market chart says it is a matter of time when it will sky rocket. Our China stock market outlook (SSEC) will be crushed, and China will become straight away one of the TOP 3 investing opportunities of the year.
This is for sure one of the most counter intuitive statements you will read this week or even this month.
Rest reassured, we are not here to sell eyeballs by making irrational statements. We have seen it all, we have made all mistakes any investor potentially can make … we are here to present you with opportunities that offer mega returns!
China’s stock market in the news: bearish perception
The reason why our thesis about China is counter intuitive to most investors is because their perception is still colored from last year’s crash. China was all over the place in the media.
As per our 100 investing tips:
News is a lagging indicator, charts patterns are leading indicators!
If we go back to our article about China’s stock market outlook which we published in December, when literally everyone was bearish on China’s stock market:
Trade War Escalates. Stock Markets Shrug. Here’s Why. (New York Times)
China retaliates against new US tariffs as trade war escalates (Financial Times)
Dow, S&P 500 records belie festering fear that China and the U.S. ‘are on a collision course’ (MarketWatch)
This is not the setup to inspire you to buy this stock market, does it?
Well, we have ‘news’ for you, investors who took our China stock market outlook serious already made 50% ! We published our bullish outlook right at a time when the above headlines were all over the place.
That’s when the stock market in China bottomed!
That’s how it usually goes, the majority of investors are trapped by headlines. Again, news is a lagging indicator.
China’s stock market chart: amazingly bullish setup
As to the leading indicator, it is and remains the chart.
When we look at China’s stock market chart our heart starts beating fast. We get very excited.
Why?
Because of the secular rising pattern (channel) which is now confirmed! Note how the ‘peak trade war fears’ with extensive media coverage coincided with a test of the secular rising channel. This is great, really.
The chart suggests that the rising channel with the green trendlines (our annotations) is the long term dominant trend!
Does this mean that eventually China’s stock market will rise to the top of the channel, which is around 9,000 points, a 3-fold rise from here?
Yes, is our answer, and it’s the reason we are so excited!
We are on record today that China’s stock market will rise 3-fold in the next few years. First hurdle will be 3400 points, second hurdle 4800 points. Once above 4800 in the SSEC it will double in no-time!
