On May 25, I pointed out and asked "The Chinese market closes at 4151.13. In the last 17 years, you can see this market has gone up 4200% . . . is this sustainable for much longer?"
And the answer is an emphatic NO!
Last week, after the Chinese government tripled taxes on trading fees, the Shanghai market saw the bears take over from the bulls.
And today, 4 June 07, the market declined 8.26%.
Overall, in the past four trading sessions, the Shanghai market has lost 15% of its value. You are not seeing things. That's right, 15% of the whole market has vaporized.
Click on the charts. Read the details. See for yourself.
As I asked on one chart, "How low will she go?"
Print out the charts. Clip them into a notebook for future generations to observe and learn what bubble markets look like.
Okay, the above was the chart from 6 trading sessions ago. After today's swan dive off a cliff, here is what the same chart looks like now . . .
And here is the update on the monthly chart. Please read notes on this chart as it explains what the monthly is beginning to portend for July . . .
One more big question: should the Shanghai Market lose 50% or more from its market top, how will that affect world markets? Will we shrug off the losses in China as we have done in the past 4 trading sessions?
Machts nichts, i.e., "It doesn't matter?"
Stay tuned to this board for timely updates . . .
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