China and Beyond: The Most Exciting Wave Juncture in Months

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China and Beyond: The Most Exciting Wave Juncture in Months
Elliott wave analysis looks beyond the conventional trend indicators

By Vadim Pokhlebkin
Thu, 07 Jul 2011 12:30:00 ET

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A conventional stock market observer is unlikely to believe that recent events across the Asian-Pacific region are anything to get excited about. For example:

60 thousand people marched across 4 Japanese cities in June to protest the use of atomic energy.
A strike by thousands of workers at India’s largest carmaker (Maruti Suzuki) crippled production at the company. Thousands of workers at Australia’s largest miner (BHP Billiton) also went on strike for the first time in a decade.
The Nikkei 225 Daily Sentiment Index reached its lowest level since June 2010, while short selling on the Tokyo Stock Exchange spiked.
Sentiment measures in China suggest that Chinese investors have capitulated on stocks.

So why is now "the most exciting Elliott wave juncture in months," as the title of this page says?

Because Elliott wave analysis looks beyond the conventional gauges of trends like civil unrest, unemployment, etc. Stocks have a history of violent trend reversals when few investors expect them. Fortunately, Elliott wave analysis can give you plenty of warning.

That's exactly the goal of the July Asian-Pacific Financial Forecast. In this issue:

Special Focus -- China, China, China: While shares of Chinese companies traded on foreign exchanges have sold off hard in recent weeks, the chart of the Shanghai Composite stock index shows a three-wave decline. This is very exciting news to anyone familiar with Elliott wave analysis. Get the full details and charts with price projections -- spread over 3 pages -- in the July Asian-Pacific Financial Forecast.

Hong Kong & Singapore:The Hang Seng’s choppy decline and the Strait Times Index’s triangular sideways movement over the past year are very telling. Add the divergence between the two indexes to this mix, and you get a compelling signal for one kind of trend ahead.

India: The SENSEX has recently touched the lower line of its trend channel that extends from the 2008 low. The BSE Small Cap, Mid Cap and Bank Indexes held above their February 2011 lows. If India’s indexes fail to hold above their recent lows, the alternate Elliott wave count will likely prove to be correct. Get the details in the "India" section.

Quote of the Month: The U.S. investor Warren Buffett has famously said of bear markets, “When the tide goes out, you can see who has been swimming naked.” The financial crisis since 2007 exposed America’s weaknesses while revealing China’s strengths. In the closing section of the July Asian-Pacific Financial Forecast, find out if we think this trend will continue.

Also: You get the latest updates on Australia, Korea, Taiwan and Japan.

Tap into these insights now via a risk-free subscription to The Asian-Pacific Financial Forecast Service. You also get instant access to the still-valuable June 2011 issue. Start here >>

Tags: Bank of Japan, Chinese markets, Elliott Wave trading, inflation, SENSEX, Shanghai Composite Index, Shanghai Composite Index, Taiwan index

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