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Home > Asian Markets
China Stocks Fall Hard! Down for the Count?
EWI's Asian-Pacific Short Term Update Gave Subscribers an Advance Warning

By Bob Stokes
Fri, 12 Nov 2010 16:00:00 ET
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There's a good reason why EWI's editor of the Asian-Pacific Short Term Update is a recipient of the Charles Dow Award for excellence and creativity in technical analysis. He earned it!
 
And Chris Carolan's 30 years of technical analysis experience keeps paying off for his subscribers.
 
Case in point: The Shanghai Composite cratered 5.2% on Friday -- the biggest one day drop in China's benchmark index in 14 months. The Shenzhen Composite lost a whopping 6.1%.
 
Here are two of Chris's forecasts for the Shanghai from earlier in the week:
 
"Prices...are generating repeated bearish RSI divergences. We should expect a...top now."
Asian-Pacific Short Term Update, Nov. 9
 
"We are looking for a reversal now..."
Asian-Pacific Short Term Update, Nov. 11
 
Chris based his Shanghai forecast on his expert knowledge of Elliott Wave analysis, Keltner Channels, and other technical analysis tools he uses to form a complete picture.
 
Of course, the widely reported "reason" for the big drop in China's shares is the talk about China raising interest rates. Marketwatch quotes Wu Dazhong of Shenyin Wanguo Securities in China:
 
“Investors are in a rush to lock in profits as they are concerned that [China’s] central bank may launch more tightening measures over the weekend.”
 
While news can sometimes stimulate short term emotions in financial markets, Chris analyzes the Asia-Pacific region in a way that's not dependent on guessing how the herd will react to any given news. His analysis is derived independently. And he applies this independent analysis across the region. Here's how a few other markets fared Friday:
 
  • Hong Kong's Hang Seng declined 1.9%
  • Japan's Nikkei sank 1.4%
  • Taiwan's Taiex dropped 1.4% 
What does Chris see ahead for China and other Asian-Pacific markets? You can find out through the Asian-Pacific Short Term Update. This dynamic region requires constant monitoring, and you may not have the time. So let our award winning editor do it for you. His decades of experience paid off for his readers this week, and we invite you to take your risk-free read of the Asian-Pacific Short Term UpdateJust click here to get started!
 
P.S. Discover if there's a connection between marriage trends and the economy in China and Japan by clicking here to read this free update!
 

Tags: Elliott Wave Principle, Keltner channels
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