The Shanghai Exchange Composite Index
Above is a chart of the Shanghai index which was the catalyst for the heavy selling felt worldwide. When you look at the above chart, today's sell off didn't do much damage technically to the chart. The index has only retraced about 50% of this month's range. When you look at our markets for example the Dow Jones Industrials, I think our markets experienced more technical damage than the Shanghai index. All of our major indices have made new lows for the month and penetrated their 50 day moving averages.
I clearly did not see this coming at all. There is one blog writer who has been calling for a sell off in the market for the past few weeks. Jim from the Kingsland Report has done an excellent job warning of a top and also covering today's events. I highly recommend you take a look at his comments. Nice going Jim!
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1 comment:
Jim K did an excellent job warning about this, especially with regard to subprime mortgages and over-margined accounts. You've done a great job on the long side too especially since last July and your historical cycles e.g. GOOG are excellent. Let's see what we get today and how much of the damage can be repaired. I am watching GOOG AAPL RIMM EBAY in the coming days.
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