Courtesy of Read the Ticker.
Correlation is not causation. However when trillions are wiped out in the Chinese stock market sell off one wonders if it has international effects.Some would worry a little.
Leverage in markets is a funny thing, losses elsewhere tend to bring losses closer to home. The SSEC has fallen 50% rather quickly and the Chinese Govt is threatening BUYERS that the cant sell. Question: Who wants to put new money into a market when you get your name put into a Govt black book when you want to sell? No one who is sane! It takes NEW money to get NEW highs. So unless the POBC is going to provide all the NEW money then the SSEC is very unlikely to do well, of course stranger things have happened. ha!
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Other market warnings have been posted by readtheticker.com blog: Market internals stink, NYSE margin divergence to price, Handsome gains in NYSE index may be over
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote…
..” If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole”..
Jesse Livermore Trading Rule
…”The four most dangerous words in investing are ‘This time it’s different’ “…
John Templeton
..“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.”..
Bernard Baruch
..“Successful speculation requires staying on top of changes in industries and companies that either create new industries or improve on existing industries. The majority of your profits will come from these two … The shrewdest traders throughout history all adapted the skill of reactionary change, as the market constantly presents new and different opportunities.”..
Bernard Baruch
..”it is better to have few stocks and to watch them carefully”…
Bernard Burach
