Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
With China in the throes of a once a decade change in leadership the speculation is the exiting leadership is happy to have economic data be relatively poor so that the new leadership will have a low base to work from and hence improvements can be made quite easily. Who really knows as the country is hidden behind a cloud of war type situation. But whatever the case the Chinese stock market sure is acting poorly. Unless this is a double bottom forming, the Shanghai index threatens to break multi year lows. Now, as a closed system without outside investors, the Chinese market may not be as much of an indicator as other country indexes, but often (excluding the past year or so) the Chinese market has led the U.S. by 6-9 months. Something to be aware of.
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