I have posted quite frequently about Chinese equity prices over the last few weeks.
Well China's Shanghai Composite took it straight on the grill last night, down a whopping 6.75%, it is firmly below 3000 at 2667.75.
www.newscientist.com/article/mg20327235.700-physicists-successfully-predict-stock-exchange-plunge.html"
The selling got worse as the session went along, this is what happens when the entire market is propped up by bad bank lending, government infusions, and retail speculation.
Our markets don't exhibit any of these characteristics so we are safe America.
tradersutra.blogspot.com/2009/08/far-to-much-speculation.html"
Futures down 7.25 at 8:37AM.
I will just say this. I would not be at all surprised to see the markets rally and rally big today. This will only further perpetuate CNBC's continued lack of understanding of the true nature of whats going on. The bears will pull the plug and the bulls will have their victory. Short covering and forced buy ins will then take this market to 10K and beyond. Right in time for Friday's employment report ahead of the Labor Day Weekend.
The bulls are not going to concede defeat this quickly, they need more suckers to get in line and ratchet stocks higher. Its the ultimate ponzy/confidence game.
I guarantee you that Goldman will be doing all of the buying today, and they will be net short by the end of the week.
Futures down 6.50 at 8:46AM
Or the market can just take it in the ass today.
Who knows.
Trade what you see.
tradersutra.blogspot.com/2009/08/something-is-got-to-give.html"
tradersutra.blogspot.com/2009/08/chinese-accounting-tricks.html"
tradersutra.blogspot.com/2009/08/more-on-china-bubble.html"
tradersutra.blogspot.com/2009/08/chinese-market-tickticktick.html"
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