The recent rise in the major Chinese stock indices has gotten some attention in the last few days so we thought we'd share with our readers what our Point & Figure charts are saying. To be clear, these particular Point & Figure charts are measuring absolute performance of the below labeled ETFs, with a box size of 2.5% and a three box reversal method. For those unfamiliar with Point & Figure charting, these charts are a simple way of measuring long-term price trends because they have no relation to time and they filter out most of the volatility of the trend.
As one can see below, the iShares MSCI China ETF has just registered a triple top buy signal, but it is still two boxes, or 5%, away from breaking out of the long consolidation pattern. On the other hand, the iShares MSCI Hong Kong ETF has just registered another triple top buy signal and is clearly in an uptrend.