CAF Once Again is Poised for Upside Acceleration

Notwithstanding all of the China detractors, who constantly are warning us that China is slowing down and heading for a hard landing, one look at the enclosed chart of Morgan Stanley China A Share Fund (CAF), and you might arrive at just the opposite conclusion: that China will ease and use stimulus measures, which the equity markets "appreciate."

Perhaps also implied from such a potentially bullish intermediate-term set-up is a Yuan devaluation.

Every country struggling with growth (except the U.S.) seems to be going the devaluation route, so why not the Chinese too?

In any event, all of the action off of the mid-Dec high at 31.50 has carved out a sideways, bullish-digestion pattern that is preparing for upside continuation towards 35.00 next.