MDM has switched to a SELL signal. The downtrend remains intact. Chinese manufacturing came in weaker than expected as global and domestic demand cooled. Forecasters said that could send shock waves through Asian economies that supply Chinese factories with raw materials and components. A scare in a slowing economy in China pushed the U.S. markets down close to -20% in late 2015 then again in early 2016. Of course, global QE rescued the situation. Today, with the U.S. quantitatively tightening, and the ECB planning the end to its QE program, there is less real and psychological support from QE than there was back then.
One analyst noted how while the trade issue is a factor, underlying demand outside of China is a larger factor, reflective of the global economic malaise. The Chinese manufacturing downturn “raises a few red flags,” said Vishnu Varathan of Mizuho Bank in a report. The slide is “not entirely surprising given more challenging global trade conditions,” but it is “potentially symptomatic of far sharper underlying demand pullback,” said Varathan. China’s trade and investment ties with its neighbors mean the slowdown “will reverberate more widely to other Asian exporters.”
List of Potential ETFs for investors:
PSQ - NASDAQ 100 1x bear.
QID - NASDAQ 100 2x bear.
SQQQ - NASDAQ 100 3x bear.
TECS - S&P Techology Select Sector 3x bear.
NOTE: This is a suggested list. Investors may wish to become acquainted with the full range of available ETFs, and should make an effort to understand how these ETFs are created and what their components are, as well as being aware of the downside risks involved, especially with leveraged ETFs. Certain ETFs may be more appropriate depending on one's risk tolerance levels. Typing in keyword 'ETF' into the FAQ keyword search bar or going here https://www.virtueofselfishinvesting.com/faqs/search?p=1&q=etf and visiting this site https://etfdb.com/ can be instructive.