
“Successful traders are not gamblers, they are probability players.”
-Mark Weinstein
Technical analysis on these two particular charts suggest the intersecting actions in China could cause problems
It has been a bad idea to be a bear on China over the last few years (though not necessarily their stock market) based on the expectation the credit crunch would lead to a financial crisis there.
I say that because I was very much aboard the China cum-financial-crisis bandwagon.
But no matter how you slice it, Chinese authorities have done a brilliant job of keeping all the balls in the air. As we know, there is often some type of transmission lag after a major global macro event. And the credit crunch bubble that popped may have been the mother of all bubbles.
Are we now about to see, or are already seeing, its lagging impact finally bubbling to the surface in China?
For every action there is a reaction.China’s actions to avert the credit crunch impact now seem to be intersecting. Here are two actions, for example:
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