China Lunar New Year Holiday: Recipie for Volatility

• Posted by tradingpoints
• on February 11th, 2010

The Hang Seng China Enterprises Index ($HSCEI) closed at 60 Min symmetry resistance yesterday and above daily resistance on Thursday, in a spirted 4 day 6.2% rally, following a 21.2% 3 month decline.

The index is approaching a zone on the daily charts where (1)  Fib cluster of price resistance, (2) timing highs due on the 15th -16th Feb &  (3) 34, 55 and 200 simple daily moving averages are converging.  Given the Eurozone’s Greece debt issues and the US market’s current levels from the bounce from critical 1045 $SPX lows, may not be the best time to initiate large unhedged position trades at current levels in the US or other markets.

All this is happening when the mainland China stocks will be closed all next week for the Chinese Lunar New Year. Happy New Year

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N.B.  The Hang Seng China Enterprises Index (HSCEI) are the larger mainland Chinese companies traded on the Hang Seng Exchange. These shares are the investable “B” shares available to non-Chinese nationals. (rather than the “A” shares on the Shanghai SSEC Exchange.)

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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