China Growth Stocks

[ratobranco]

US-Listed China Small Cap Index

I've read that technical analysis works best on indexes, because the larger sampling volume gives a more reliable picture of how overall market sentiment in the space is changing and evolving.

I'm thinking we should make an index of US-listed china small caps, and then use that index for technical analysis. I think it would be extremely useful, particularly because it would allow us to better understand how this specific asset class behaves in relation to currencies, commodity prices, interest rates, US macroeconomic news, Chinese macroeconomic news, other indexes, and so on. There are probably a number of interesting correlations to be found. It would also allow us to determine if pops and drops in stocks that we own are associated with the stocks themselves (indicating coming good or bad news, potential insider trading), or if the changes are byproducts of global movements in the space.

We could call it the I-Hub US Listed Emerging China Small Cap Index.

Any ideas as to which stocks should be included and what weighting should be used?

(For full self-interested disclosure , if we could create a situation where the index is taken seriously, that would increase visibility of the space and add buying pressure, which would probably lead to some nice gains lol... then we might start seeing Wisdom Tree and Van Eck ETF's that try to track the index, and so on... I'm quickly getting carried away here)