China’s economic health is represented by the Shanghai index. Since the 2007-2008 crash China has been having huge difficulties standing up. There has been just a little upside movement and it looks corrective. After the short rally prices continued lower as the downtrend line remained mainly untouched, which indicates for an accelerated down movement.
Usually fifth waves are corrected a hundred percent and in extreme cases beyond the starting point of wave five, so there is a possibility for a price action under the 1600 level. In this case only time will tell. The good news is that China maybe near a reversal point and a new trend may be at hand in the next several years. Other emerging markets like Turkey, India, Ukraine, Brazil, Morocco, South Africa and more are also near a turning point. For example the violence in Ukraine reached its peak and since then stocks are up 28%. This could be a sign of an incredible opportunity for a long bull market.
“Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that “The time to buy is when there’s blood in the streets.”
Rothschild made a fortune buying in the panic that followed the Battle of Waterloo against Napoleon. But that’s not the whole story. The original quote is believed to be “Buy when there’s blood in the streets, even if the blood is your own.””
So, is that a good answer to the question “What is going on with China and the other emerging markets?”?