Monday, July 5, 2010

Watching China

Since China plays such a big position in the global trade, we've begun watching their markets alot closer. It also gives us something to watch with the US markets closed and China having 2 trading sessions since the US closed last Friday. Especially since Japan has for a long time lagged any US moves. China is the one market that seems to move prior to the US. Unfortunately its been all down for a long time now.

On Monday, Shanghai closed down .8% after another early plunge followed by an afternoon rally. This made a 2nd attempt to break down towards the 2300 level. As of today, the market is up some 1.7% at least signaling a short term bottom. It'll be worth watching to see whether a bottom was put into place. Expect the US markets to at least follow tomorrow. Any selloff in the AM should be bought. The US markets are very oversold so they are at least due for a bounce. Most think it should be sold but we'll see how it plays out first.


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