Elliott, Timing and China

As a chart of the week, we have taken SSEC China (The Shanghai Index). China has been always been of key interest to the world. India looks at it to understand relative growth in China compared to India. On an Elliott perspective, SSEC seems to be making a cycle structure expanding diagonal with another final ongoing 5 cycle wave. The 1 and 2 primary circle of the 5 cycle wave seems complete and we are headed into the 3 primary cycle wave up.

This means that despite all anticipated negativity Chinese SSEC should head higher from 2011 lows. Now we have added multi month and multiyear Jiseki cycles along with the Elliott count. The multi month Jiseki is already turning up from worst rankings near 20 percentile and the very fact that cycles lows are non confirmed by higher lows in price suggests that our 2011 low anticipation could be correct. On the larger multiyear Jiseki structure the cycles are down for the last 4 years. SSEC has been falling and underperforming global assets since 2007 now. The rankings and cycles are still high and we have no change of trend confirmation on multiyear Jiseki cycles. The confirmation will only come when all the 3 cycles (red, blue and grey) turn up.

One should also keep in mind, that final 5 wave Elliott structure could also see a non confirmation from long term cycles. In conclusion the Jiseki timing model suggests potential multi month primary upside before anything. We anticipate support coming in soon enough for SSEC.

This article was written for ATMA.

Time Triads, Time Fractals, Time Arbitrage, Performance Cycles are terms coined by Orpheus Research. Time Triads is our weekly market letter. The report covers various aspects on TIME patterns, TIME forecast, alternative research, emerging markets, behavioral finance, market fractals, econohistory, econostatistics, time cyclicality, investment psychology, socioeconomics, pop cultural trends, macro economics, interest rates, derivatives, money management, Intermarket trends etc.

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