Here are some stats on the Shanghai Composite:
- +49% year-to-date
- +143% in the last year
- Up 5 consecutive trading sessions
- Investor margin debt has more than doubled in the last year
Shanghai Composite (Daily)
Shanghai Composite (Weekly)
Shanghai Composite margin debt is at nearly 9% of total capitalization of shares trading:
My intuition tells me that Shanghai shares have launched into the final inning of a parabolic blow-off. However, it is well known that the final stage of a parabolic market advance is the most volatile and least predictable. In my estimation we could see anywhere between a further 10% to 30% appreciation:
