Tuesday, September 8, 2009

Chinese Market relative to Commodities



the graph shows the ratio of the Shanghai Index to the GS Commodities Index (spot). when the ratio is rising it means Mainland Chinese stocks are outperforming commodities prices, and vis a versa. the black dashed line is the 520 week moving average (10 years).

just an interesting chart I happened upon. throughout the year (in the newsletter) I have been tracking the relationship of Chinese stocks to commodities prices, so I thought I'd post this ratio before I forgot about it.