pundit sees 12% rally in shanghai comp. index!

[Source: www.proactiveinvestors.com.au]

Pundit sees 12% rally in Shanghai Composite Index
Tuesday, June 25, 2013

There is one scribe who has the courage of conviction with a call the Shanghai Composite Index will jump about 12 percent in coming months.



According to Bloomberg, while Tom DeMark had correctly predicted in February that the Shanghai gauge would slump, he had also forecast a rebound in March.

While DeMark correctly called the China market’s peak this year, his prediction for an 8 percent decline in the Shanghai index proved too optimistic. The measure has tumbled 20 percent from the February high.

DeMark wrote yesterday that “contrary to what most traders believe, it is ideal for a market to bottom in conjunction with negative news to exhaust a downtrend and encourage the last weak seller to capitulate.”

He also noted, "I had not received any indication of possible bottom since February until now.”

DeMark provided consulting to hedge funds including George Soros’s Soros Fund Management LLC and Leon Cooperman’s Omega Advisors Inc.


Ends.