Chinese Stocks Are Topping Out

Be careful with Chinese stocks. The Shanghai Composite Index (^SSEC) has been on a parabolic upside that is unsustainable. Prices peaked at 3,040 on February 26, 2007 and then turned lower. Look for the ^SSEC to be quite volatile.

Related Articles:

Anatomy of a Bubble Top
Chinese Internet Stocks
Price Patterns - A Bubble Top is an Extreme Pattern
Price Upsides Often Occur in Three Stages

Posted March 8, 2007.