China Attempts to Crush Yuan Shorts
Currencies / China Currency Yuan Jan 05, 2017 - 04:05 PM GMTYuan shorts suffered a bone crushing short squeeze over the course of this week after it hit an expected Master Cycle low on December 29. The retracement hit Intermediate-term resistance at 23.60 yesterday. Currently CYB is hovering in that zone.
CYB may go higher, but it cannot rally beyond the bottom of Wave 1 at 24.24. If it goes higher, the likely target appears to be the 50-day Moving Average at 23.74.
ZeroHedge writes, “As we observed earlier, China’s currency gained 0.5% in offshore market to 6.8275 vs dollar, earlier surging as high as 6.78, extending its 2-day advance to 2%, the most on record, driven by a direct attack by the PBOC on shorts, whom it crushed overnight when it pushed the overnight offshore Yuan deposit rate to 80%, the highest in history.”
I have not been tracking the Cycles for CYB in any great detail, since it is an ETF and not an index, which is what I report on. However, it appears that Wave 5 in CYB is currently inversely correlated to TNX. If so, the decline may resume by next week.
Regards,
Tony
Our Investment Advisor Registration is on the Web.
We are in the process of updating our website at www.thepracticalinvestor.com to have more information on our services. Log on and click on Advisor Registration to get more details.
If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .
Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com
As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals.
Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.
Anthony M. Cherniawski Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.