Tag Archives for " China "

Collateral Damage in the China Trade War

The trade war with China is on. It started with aluminum and steel.  Now it seems to be escalating back and forth. The stock market is concerned because of course everyone knows…or they should, that this is how the Great Depression got fueled.  So what starts out as very targeted and seemingly under control, can rapidly spin out of control.  And this is where collateral damage occurs.

Bite Out of Apple

The concern with Apple is that it could get caught up in a trade war with China.  If China decided to impose tariffs of some kind on iPhones or various components, it would significantly hurt Apple.  Or China might organize a boycott of U.S. related products. China is just one concern related to Apple stock. There are other rumors floating about iPhone production and demand.

This week Apple (AAPL) stock got hit hard on Thursday – Friday dropping 6.8% and ended down $9 for the week. Apple’s chart below shows the key support at $165 that the bulls need to hold. If that breaks I believe it will rapidly test the February low.

Collateral Damage

If Apple gets hurt in this trade war with China then it has a rippling effect on several other stocks that supply Apple. Below are 4 stocks that are already showing signs of damage.

The first three stocks are showing signs of a major top. Quorvo is less clear but still at critical short term support.

China Still Matters, so What are the Charts Telling Us?

The Chinese economy hasn’t been in the news very much lately. And maybe that’s because their economy seems to be chugging right along. As the world’s 2nd largest economy it is a major influence on global markets. China still matters, and matters a lot. 

Three economic reports were released last night. Retail Sales was expected to be up 10.6% year over year and was actually reported as 10.7%. This performance is right in the range of the last 2 years but below 2013 and 2014.

Industrial Production was expected at 6.3% year over year and reported as 6.5%.  This level was higher than most of 2016, so showing stability but well below the 2013 and 2014 levels. 

The last report released was Fixed Asset Investment which was expected at 8.9% year over year but reported as 8.6%. This was the weakest growth in year over year since last December.  So two of three key reports were on track.

The Chinese economy appears to be holding steady but China stock markets seem to be giving a little different picture.  In today’s video I look at what the charts of the Shanghai Composite and Shenzhen Composite are telling us.  Continue reading

China Winds of Change

Another week and another bunch of headlines out of or related to China. China winds are blowing in the global economy, Asia tensions and technology just to name a few.  Here are 5 things that caught my eye this week: Continue reading

Will China Crow This Year or Get Plucked?

Happy Chinese New Year! Today is the first day of the Chinese New Year and it’s the year of the Rooster. This celebration actually started on Friday, New Year’s Eve and goes on for a couple of weeks. It is also called the Spring Festival.  I talk about this more in a previous post.

The stock markets in China were closed on Friday and won’t open again until next Friday. The Hong Kong Stock Exchange is closed on Monday and Tuesday.

China Tensions

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China Stock Market at a Crossroads

The China stock market as reflected by the Shanghai Composite and Shenzhen Composite indices are at a point where they have stretched their price action out in an ever compressing pattern over the last 10 months.

This won’t go on forever and I believe we are very close to a resolution.

In today’s Asia Update video I look at the Shanghai and Shenzhen indices, Hong Kong’s Hang Seng Index, India’s Nifty 50 and Japan’s Nikkei 225.

I also review two China ADRs, Weibo (WB) and Ctrip.com (CTRP).