Monday, November 26, 2012

Will The Second Time Be the Charm for the Chinese ETF?


The long-term trend of the Chinese ETF is consolidation in a symmetrical triangle pattern.  Several weeks ago, prices broke out, but fell back to the 200 week EMA.  Last week, however, prices printed a strong bar.  While volume was weak, that can partially be explained by the market being closed on Thursday and weak overall participation on Friday.  Bolstering the bull argument is the rising MACD and positive CMF reading.

But also consider  the Chinese copper market is now flashing a warning signal, as imports dropped 22% in October.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/e871ca92-37a0-11e2-8edf-00144feabdc0.html#ixzz2DKwZZDynPut those two facts together, and the Chinese copper market appears to be flashing a warning signal. Indeed, back-of-the-envelope calculations suggest a month-on-month drop of almost 20 per cent in Chinese apparent copper demand in October.


High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/e871ca92-37a0-11e2-8edf-00144feabdc0.html#ixzz2DKwXPHICChinese copper data have just taken a worrying turn for the worse.
The country’s imports of the red metal tumbled 22 per cent in October to their lowest in more than a year. At the same time, stocks of the metal have risen to a record high: in October alone, inventories at Shanghai exchange and bonded warehouses collectively rose by about 135,000 tonnes, and are now not far off 1m tonnes, most traders believe.

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/e871ca92-37a0-11e2-8edf-00144feabdc0.html#ixzz2DKwZZDynPut those two facts together, and the Chinese copper market appears to be flashing a warning signal. Indeed, back-of-the-envelope calculations suggest a month-on-month drop of almost 20 per cent in Chinese apparent copper demand in October.

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/e871ca92-37a0-11e2-8edf-00144feabdc0.html#ixzz2DKwepnPF
Chinese copper data have just taken a worrying turn for the worse.
The country’s imports of the red metal tumbled 22 per cent in October to their lowest in more than a year. At
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/e871ca92-37a0-11e2-8edf-00144feabdc0.html#ixzz2DKwZZDyn