When I go through my charts every day, there are a lot of things that I look for. Price is the most important of course, but momentum, moving averages, relative strength and price patterns are just a few of the other details that I try to focus on. The goal with all of this is to find risk/reward opportunities where the reward potential is exponentially greater than the risk involved.
This is why the Nasdaq Composite is such an easy short. Not because
trading is easy, but because the risk here is so well-defined, and the
reward possibilities are substantially greater. This is all that really
matters. Look at the new highs in February and into early March.
Momentum was nowhere near confirming them and now momentum is making
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There have been runs on two small banks in China with depositors fighting to get through the doors to make withdrawals when they opened. Is this the first crack in the great wall of Chinese credit?
Reuters reported local news about queues outside the Sheyang Rural Commercial Bank in Yancheng yesterday and the Rural Commercial Bank of Huanghai faced similar rushes by depositors today after rumors of insolvency at Sheyang. Officials say it is impossible for a Chinese bank to go bankrupt.
Real estate crash
However, financial institutions have made large loans to private and state developers whose project lie abandoned and their loans cannot be repaid. Where are the banks to find the money to pay out to depositors who want to withdraw their money?