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Deutsche Bank Quants Using "Bubbles" Model See Turning Point In China, Oil

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Mark Melin
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On a day when legendary investors George Soros said an economic hard landing in China is unavoidable, a Deutsche Bank quantitative report points to two highly correlated markets changing trends.

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DB 1 21 regime change

Deutsche Bank quants: Watch for Chinese stock market turnaround

Deutsche Bank’s “Bubbles model” is pointing to the potential for the Chinese stock market to turn around, in stark contrast to comments made by Soros on Bloomberg TV this afternoon. The DB quant model “suggests that the CSI 300 may rebound, but there could be a regime change by the end of the year.”

“Given current policy uncertainty, we expect that investors will have...

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.