posted Dec 12, 2004 at 12:43PM
A good and potentially very important read is Sy Harding latest commentary.
He has some rather ominous comments to make in regards to what is happening to the Chinese auto market. In that regard I thought it prudent to take an updated look at the China Fund chart.
Now the biggest thing here is the fact that the CHN chart has reclaimed it's neck line and negated, for now, bearish H&S measured move targets.
However I would not buy this chart at this time, as it shows short-term topping characteristics. Obviously signs that all is not well in China would be signalled by a move back below 30.
One could argue that the price action of the past few months falls within the confines of a B wave countertrend rally. In the end it is a chart to check out from time to time as it could have great impact on commodity based stocks.