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Why Did Chinese Stocks Soar 10%, Despite a Bearish Consensus?
The Asian-Pacific Financial Forecast goes against the grain for a spot-on forecast

By Nathaniel Williams
Mon, 24 Dec 2012 14:15:00 ET
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One of my favorite ways to prepare for the holiday season is to read Charles Dickens' A Christmas Carol. This year, though, it seemed as if I had already read about Scrooge's gloomy outlook and his negative rants, thanks to the mainstream media’s recent pessimistic consensus on China.  

For example, here's a sample of headlines about China you might have seen this year:
·         "China's Economy: Apocalypse Soon?" -- The New York Times
·         "Five Signs of the Chinese Economic Collapse" -- Foreign Policy Magazine
·         "Is China Running Out of Steam?" -- The New Yorker
·         "Fifteen Reasons Why Everyone Is Suddenly Freaking Out About China" -- Business Insider
·         "Falling Star" -- Barron's
But it's not just the Western media: Chinese experts are equally pessimistic. A professor at a Chinese university recently wrote a book titled, The End of the Chinese Dream: Why Chinese People Fear the Future. A prominent Chinese economist claimed that investor sentiment is the "most bearish ever." And even Chinese Prime Minister Wen Jin Bao noted that China's economy faces "huge downward pressure."
Despite the enormous bearish consensus, EWI's Asian-Pacific Financial Forecast Editor Mark Galasiewski has drawn a stunningly different conclusion after meticulously and independently studying the Elliott wave patterns and technical indicators. In a September 2012 Special Report, he went against the grain to tell his readers:
"The Shanghai Composite is forming a ... low near the lower line of the index's long-term trend channel from the early 1990s."
The forecast was radical, indeed. But in early December 2012, prices in the Shanghai Composite hit this long-term trend channel -- then soared. Since Dec. 3, prices are up almost 10%. You can see the stunning reversal in the chart below (Elliott wave labels removed).
But here's the most important question for your portfolio: Is the recent spike a correction in China's bear market or the start of a new bull market
You get an independent answer -- and a full understanding of our analyst’s forecast -- in the December 2012 Asian-Pacific Financial Forecast. This issue gives you a timely update to the Special Report. Plus, you will discover the significance of the "extraordinary convergence of pattern, price, momentum and sentiment."
Prepare yourself for 2013 with the most important analysis on China you will find anywhere -- via your risk-free trial offer. Details>>
* * * * * * * * * *
Here's what you get during your RISK-FREE 30-day trial:
The Asian-Pacific Financial Forecast (monthly)
Editor Mark Galasiewski's insightful analysis and commentary on stocks in China, Japan, India, Australia, Singapore, Hong Kong, Taiwan, Korea and more has prompted one subscriber to write that Mark clearly has his "finger on the pulse of the local scene here."
The Asian-Pacific Short Term Update (Tuesday, Thursday, Sunday)
Editor Chris Carolan, who is an award-winning market technician, keeps you abreast of fast-moving opportunities in major Asian-Pacific markets between monthly issues of The Asian-Pacific Financial Forecast.
The Elliott Wave Theorist (monthly)
Bob Prechter's straight-talking Theorist is the bedrock of EWI analysis. Trusted since 1979, it’s a must-read for every independent investor. 
FREE BONUS: Access Mark Galasiewki's 5-page Special Report on China, which gives you the details on a multiyear move that "lies directly ahead."

 



FFSThe Asian-Pacific Financial Forecast is the world's most forward-thinking investment letter for Asian-Pacific markets.

Each monthly 10-page issue gives you timely, big-picture analysis and forecasts for stock indexes in Japan, China, India, Australia, Singapore, Hong Kong, and more.

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