Trade wars Causing a ruckus in the Asian Markets and capital flows has been seen within the Emerging Market countries. India`s Nifty is sitting at all time highs while Shanghai composite is down almost more than 15% this year from its highs.
US Indices are still sitting at all time highs. Hence, a flow chart of rising indices will cause the Chinese market to head north in the coming weeks and once the gap is closed, then Shorts would look more attractive and all depends on the trade / tariff rules. Ultimately, China will have to be in a defensive position until they become offensive by selling US treasury Bonds which they hold of approximately $ 1.4 trillion ( its approx number because they liquidated some $500 - 800 billion in January).
A gap was formed in the in the month of June which still needs to be closed and the median price comes at 3040. Hence, a short looks attractive as well as rewarding because the cluster in US equities will break at some point / give big resistances that will equally impact Asian Markets.
US Indices are still sitting at all time highs. Hence, a flow chart of rising indices will cause the Chinese market to head north in the coming weeks and once the gap is closed, then Shorts would look more attractive and all depends on the trade / tariff rules. Ultimately, China will have to be in a defensive position until they become offensive by selling US treasury Bonds which they hold of approximately $ 1.4 trillion ( its approx number because they liquidated some $500 - 800 billion in January).
A gap was formed in the in the month of June which still needs to be closed and the median price comes at 3040. Hence, a short looks attractive as well as rewarding because the cluster in US equities will break at some point / give big resistances that will equally impact Asian Markets.