Felix Zulauf (CEO, Zulauf Asset Management) has viewed the Chinese banking system as about to implode. If this happens, there could be a bamking crisis in Hong Kong. He expects 2014 to be the year of the demise of the Chinese banking system. Hence, shorting the Hang Seng stock market is recommended.
Technically, Hang Seng has just broken below its 200-Day MA, confirming its downtrend. However, I am not shorting yet. Will wait for it to tick slightly higher.
Monday, February 3, 2014
Should I short now?
Marc Faber has said that the stock have made a high, and stocks are overvalued. I am finally a buyer of his theory.
For the past 5 years, I did not heed his doomsday advice as I felt they were made too early. As such, I
am a buyer on every dip in the stock market. This year, I am bearish on the stock market. The reasons have been discussed before (Fed tapering, overvalued stocks, etc...)
Unfortunately, I did not make money from shorting Twiiter as its price has not changed much. I have got out of it, and will be looking at other stocks/ indices to short.
Between US, HK and Singapore stocks, I think Singapore and HK are better shorting targets as they have been the weakest. However, now that they have been so oversold, I will be looking to short only once they have made a temporary recovery.
Between US, HK and Singapore stocks, I think Singapore and HK are better shorting targets as they have been the weakest. However, now that they have been so oversold, I will be looking to short only once they have made a temporary recovery.
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