I am talking about Mr Xi Jinping, the leader of China's ruling communist party. Since Mr Xi Jinping was elevated to the general secretary in 2012, the Shanghai stock exchange rocketed from its low of 1900s to 2400s - an increase of 25% over less than 3 months!
The above is a SSE50 China ETF weekly chart. Since breaking out from the double-bottom pattern, and with MACD divergence, its strength has also caused it to break out of the raff regression downward channel. I can safely say that the intermediate trend is no longer bearish. Have we seen the low? Is this the start of China's super-bull run?
Mr Xi is known as a reformist. He has called for strong economic reforms in his first speech outside china in Dec 2012. Can he come to the rescue of the china stock market, where today, 95% of stock account holders has given up and stopped investing? Going the market movements since his inauguration, that maybe a strong possibility. I know for a fact that the market likes to go against the general consensus. Mr Xi has 10 years to do it, starting from next month, where he will be installed as the China's President.
What can we do to profit from this? Look at the Shanghai SSE weekly chart. I suggest waiting for the current retracement to end before buying. How do we know the retracement is likely to end? After a series of black candles, wait for the first white weekly candle. Two consecutive weekly white candles will be a double confirmation to enter.
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