this chart taking a look at the 14 day rsi and of course we see a number of chinese equity markets including in the us entering overbought territory with that rerating the 14 day rsi above 70 the last line that we saw that it was this overbought was when the index peaked back in february 2021 so even as we are in overbought territory do you still see further opportunities given that now with basically every meaningful covid zero restriction abandoned we just have to wait to see how the rebound picture plays out i think its quite possible that in the short term we could see some consolidation as technicals look overbought by dove when it comes to china i think investors need to take a what medium term approach keep in mind that for the last three years locketts faced three major headwinds covid looked on measures decimation of the property market and deregulations of the technology sector believe it or not these all these headwinds but policy driven not cyclical or structural in nature and now as policy is shifting with all these fronts i think theres lot of upside in the market as the recovery story plays out so we do see further gains for the market short term yes the prediction possible but three months six months down the line we see markets going higher we also see fast and furious developments when it comes to the tech and growth regulatory crackdown you mentioned that as one of the policy driven downsides that weve seen for the markets with this news that jack ma is to cede control lots of uncertainty as to when and if we see that ipo now of course with that development are you overall feeling more optimistic about a rebound in tech and growth yes i think technology sector could lead the rally in the chinese equity market the sector is down close to 70 percent from its peak in 2000 pretty but the clear signs that authorities are easing regulations because they want to get the economy back on track and the business models of these companies have not been decimated there dave cheesy but its more than that they are just stuck with a new environment and they can still deliver double digit kind of growth so i do see a lot of visiting potential for the technology names and i think its going to lead the recovery in the china equity market thresh just hold on a second because we do have breaking news at the moment bloomberg has learned that goldman sachs is embarking on one of its biggest round of job cuts ever this as it locks in on a plan to eliminate about thirty two hundred jobs this week now we are hearing that the forum is expected to start the process midweek and the total number of people affected will not exceed thirty two hundred more than a third of those would likely be from within their core trading and banking units which sort of indicates the broad nature of the cuts to form also poised to unveil financials tied to a new unit of houses or credit card and installment lending business which will record more than two billion dollars in pretax losses again bloomberg has learned that goldman sachs is embarking on one of their biggest round of job cuts ever this as theyre eliminating about thirty two hundred jobs this week a stretch going back to you of course goldman sachs gs one of those companies eliminating jobs its a bit idiosyncratic which is what goldman sachs usually does but what is this really telling us about the state of the broader us economy when we continue to see sort of a mixed picture coming from eco data in a soft economic indicators are suggesting that the economys is weakening but the problem is that the labor market is too of a stroke you look at the number of people employed last month gain surprise on the upside so as long as the us economy continues to add jobs i think its going to be very difficult to see a broad based recession what we are seeing in the economy is that good economy is in recession the service sector is still doing extremely bad so far our economy to go into recession fully go into recession i think we need to see people losing more jobs especially in the service sector only then i think id worry about the us economy given where the fed is headed this is mean that china and given what the pbl see is doing as opposed to the fed could be found out in 2023 and are you allocating according to that prospect absolutely we are going to see a divergence performance in the equity market as pbs is easing policy and there is a great recovery story after the reopening of the borders on the other hand the fed is stating the tightening rates and there were these rates to 5 percent and just keep it there for the entire 2023 so thats going to be on the us economy so we do see an equity market outperforming the rest of the world in 2003