The Shanghai Composite made a new low in Monday’s trading. The country’s uber bear market seems to have slipped under traders’ radars as global markets obsess over the U.S. fiscal cliff.
At the lows on Monday, the Shanghai Composite was down 67.41 percent from its October 2007 high. This gives new meaning to the term “shitting BRICs.”
Wow! Cramer thinks China is turning. Double bottom? Gotta hold Monday’s low. Stay tuned.
(click here if charts are not observable)
Global Macro Monitor 
I’ve always found that double bottoms (and tops) are good places for short term trades. But they are terrible places for longer term investment decisions. Double bottoms almost always break to the downside for the obvious reason that the trend almost always continues. Same for double tops…the market almost always moves above them during an uptrend.
In welcome news, they propose to build the world’s tallest skyscraper in 90 days (versus 6 years). That’s got to be a good sign, right? 🙂
http://globaleconomicanalysis.blogspot.ca/2012/11/sky-city-china-to-build-worlds-tallest.html
Thanks for the comments. Would you feel comfortable going into the tallest building constructed in only 90 days? Also an indicator of nation peaking.
Note the Shanghai retested the bottom and bounced on low volume today. Nice plunge protection team!
Pingback: The Shanghai Cliff | The Big Picture
Pingback: The Shanghai Cliff | GearsoftimesGearsoftimes