^SSEC Shanghai Composite 4,345.36 Jul 27 Down 1.10 (0.03%)
It amazes me with most markets taking a 3-5% haircut this week, it barely is affected.
It amazes me with most markets taking a 3-5% haircut this week, it barely is affected.
Shanghai revsited
- Thread starter pumpanddumper
- Start date
Remember what happened last february ?
What i want to know is if the carries could be leading the way here this time due to all the debt? I'm looking at historical data on the daily and its pretty damn close. I can't get the hourly that far back.... Although the dow slide 1000 points the last time the carries unwound, is there room for more after already falling 800? This time the whole board is red not just Shanghai so we can see why this so called "correction" was drastic. The carries are only good for a 1 day bounce. If thats the case and history repeats itself tuesday is going to be dominoes.
What i want to know is if the carries could be leading the way here this time due to all the debt? I'm looking at historical data on the daily and its pretty damn close. I can't get the hourly that far back.... Although the dow slide 1000 points the last time the carries unwound, is there room for more after already falling 800? This time the whole board is red not just Shanghai so we can see why this so called "correction" was drastic. The carries are only good for a 1 day bounce. If thats the case and history repeats itself tuesday is going to be dominoes.
BTW, real-time quote is free in China (there is no exchange-fee). Software is free of charge too.
http://www.dfzq.com.cn
I am not aware of any English version available...
http://www.dfzq.com.cn
I am not aware of any English version available...
Shanghai is a closed system operating under its own laws of supply and demand that don't really have much if any connection to the global economy (or even their own economy).
Gartner has a world stock market index and this past week it was off so much that it rivaled something like the 29 crash. This little 4% correction we had here in the US doesn't tell the story of the carnage that went down in the stock markets of the rest of the world. As I have been saying for a while, if you want to be short then you should be short the EEM not the US indices. A credit crunch will hit them harder, the weak dollar has been squeezing their profits, and they are far more extended than the US stock market which relatively is not.
Gartner has a world stock market index and this past week it was off so much that it rivaled something like the 29 crash. This little 4% correction we had here in the US doesn't tell the story of the carnage that went down in the stock markets of the rest of the world. As I have been saying for a while, if you want to be short then you should be short the EEM not the US indices. A credit crunch will hit them harder, the weak dollar has been squeezing their profits, and they are far more extended than the US stock market which relatively is not.
I didn't say they would "create" a bounce. What we are seeing is a credit meltdown and less borrowing of the YEN which supports the markets. If we look at the carries in late february we see one bullish day out of the week which was a bounce. If we see a double bottom this monday and a close on tuesday below it, it may be safe to assume they will continue down. Does that mean the dow will come down with it I have no idea but it is possible. Everyone is hoping for a bounce but the equity isn't there to support it this time is it? It looks like the bus is going down hill fast and someone has their foot on the gas while everyone else is trying to put theirs on the brake.
