A Warning from Shanghai
- Posted by DynamicHedge
- on June 22nd, 2012
The Shanghai composite is much more sensitive than the $SPX lately and one of the world indices not making new lows. It has previously been an excellent tell on the $SPX and should give you a days worth of warning if the situation in Europe starts to deteriorate further. If you’re bullish, pick your swing low ($2344 or $2252) and use that as your pivot for the summer months.
We gave up the first pivot at the end of May and dropped 50 handles quick-snap. We could be in for similar treatment if we lose the 2252 level.
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DynamicHedge is an equities, futures and derivatives trader based on the West Coast. He runs a long/short opportunistic relative-value strategy within a proprietary trading group. More
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