Thank you for a great article :Today the market look’s like a making rebound but I think its a dead cat bounce and akin to catching a falling knife! When in doubt stay out!
Asian markets have just closed. The Shanghai Composite Index closed down 7.6% at 2,964.97, leaving it below the psychologically important 3,000 line. Elsewhere in China, the Shenzhen closed 7.1% down at 1,749.07, and the ChiNext plunged another 7.5% to 1,990.71. Tokyo tried an early rally (the BoJ buying like mad, probably) but sentiment rapidly reversed that and so the Nikkei too closed 4.5% down.
Out of 2,200 stocks on the Chinese markets, just 12 (twelve) rose yesterday.
But nevertheless,”Investors are overreacting about economic risks in China,” Capital Economics said in a research note to clients this morning. “A combination of poor data and policy inaction in China may have triggered today’s market falls but the bigger picture is that we are witnessing the inevitable implosion of an equity market bubble.”
There are two flaws in that balm. First, it leaves out a few…
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