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Strategies & Market Trends : Playing the QQQQ with Terry and friends.

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From: Walkingshadow	5/14/2009 12:48:27 AM
	of 4814

Here is another index that is a very juicy short: the Shanghai composite (SSEC). This is the first big rally since the bubble imploded in late 2007. The index has come much too far too fast, and has been overbought for quite a while. Problem is, the case for a short right here is not supported by evidence from the chart or technicals----YET. This will happen, but I am not certain when. The index is currently down about 2%, so after today's session, there will be more in the way of sell signals in the technicals. SSEC is up over 60% in less than 7 months. And China's economy is going from bad to really bad steadily. So this can't last. Besides, it is unheard of for a bubble to resolve so quickly. Typically that takes at least a quarter century. I am inclined to just short this index and forget about it (probably with a trailing stop).

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