Black Swan Capital
08-31-2009, 06:00 AM
Chinese stocks got whacked overnight, down 6.7%. Will it matter? If the story about China finally increasing domestic demand proves true, evidenced by increasing exports from the Asian countries into China, it could likely blunt any negative impact of falling stocks in Shanghai. But, we won’t know that till we know it.
The daily chart below is a bit convoluted, but it compares Shanghai Stocks (red line) vs. S&P 500 (black line) vs. 10-yr T-note Futures (maroon line) vs. Aussie-USD (blue line).
http://www.traderslog.com/static/images/uploads/crooks831.png
The price action of the stuff above will show us if the break in China’s stock market matters.
Jack Crooks
The daily chart below is a bit convoluted, but it compares Shanghai Stocks (red line) vs. S&P 500 (black line) vs. 10-yr T-note Futures (maroon line) vs. Aussie-USD (blue line).
http://www.traderslog.com/static/images/uploads/crooks831.png
The price action of the stuff above will show us if the break in China’s stock market matters.
Jack Crooks