Bear Market Continuation - 2444 days and counting

9 oct.

China remains weak, don't fall into the trap of longing here. The HSI has been in a downtrend (bear market) for almost 7 years. Given the ongoing property crisis, it would be very dangerous to go long here. I will not be buying the dip in the ongoing bear market, not until I am confident the low is in and the US elections are over. The time to buy the bounce was the breakout of the parallel channel but I have taken profits on my BABA and PDD trades - please refer to my chart on PDD which was an easy long trade. But now I am back on the sidelines remaining patient.

It is very common to see a Flat correction with a powerful B wave and a weak C wave. This is essentially a Lower Low and a Lower High (Wave C). I think this move will be unwind over the coming weeks, particularly as we head into the elections. Both parties will be threatening stronger tariffs on China and once the elections are out of the way and the rhetoric dies down, it will be better to revisit the China equity trade from a long position.

For now, I will continue to remain on the sidelines and anticipate continuation of the bear market.

Not financial advise!