Thread: China

More warning signs from China. We can blame it on the China CB tightening, but the fact is, there has been distribution for weeks now. First line of support blown out, 50 DMA gone, 200 DMA taken out, and bearish 50/200 cross all but certain. Looks like there might have been a little H&S break in there as well.

Be careful before investing based on bullish headlines from China.

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China- it's the bank policies announced there this week. Tightening of credit.

we'll see. Not looking good.

Bulls continue to tout the success of China, aka, the Growth Engine of the Galaxy. Have no fear, China is buying up commodities and even though their exports are down exponentially, it's ok, because it's different this time with ultra low rates. Well, a peek into the news shows that China is crushing speculators and while they haven't publicly identified a bubble, they are taking steps to squash it, unlike our fearless leaders. I see NOTHING bullish about this chart. 2800 gap to be filled at the very least, but bulls will hold on until 2600 is breached. Of course, once it's breached, they'll probably keep buying anyway because by then they'll actually believe they can do it without China.

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China's model worked fine as long as its customers had bottomless borrowing. You can't export your way out of a problem if a substantial percentage of your customers are out of work and the other's can't/won't borrow, at least until your customers are in better shape. The EU is a larger market than the U.S. for China, so it's not just the U.S. I'm talking about here.

Although they are trying to get out of their stimulus program (which has been going on for some time now in high tech) because it keeps inefficient companies in business, those same businesses keep people employed. They are importing more commodities to make more stuff.

Now they are trying to start an "Idigenous Innovation" program, which of course, makes foreign businesses even more leery about buying their stuff or doing business over there. And of course, even the smell of it (conflicting and ever-changing details as the idea morphs) makes their trading partners p.oed because even the idea smells of breaking trade treaties. This on top of intellectual property problems.

Where are they going to sell their stuff?
How will they keep people employed?
Too much spending on too many big internal projects will give them Japan syndrone


A very difficult balancing act!

Shanghai Red Chips rolled over again last night. Markets cannot rally if liquidations are taking place in China.

China still has a 9% GDP - everyone is so emotional. It's all an over reaction.

Originally Posted by Birchtree

China still has a 9% GDP - everyone is so emotional. It's all an over reaction.

I say...
China still has a 9% GDP - everyone is so emotional. It's all a necessary over reaction.

Who's getting emotional? Hedge Funds?

Chinese Property values begin to collapse-

http://www.bloomberg.com/news/2010-0...hit-banks.html


"China’s property market is beginning a “collapse” that will hit the nation’s banking system, said Kenneth Rogoff, the Harvard University professor and former chief economist of the International Monetary Fund.

As China’s economy develops, “especially at the speed it’s growing, it’s going to have bumps,” said Rogoff, speaking in an interview with Bloomberg Television in Hong Kong. He also said that while recoveries across the global economy are “very slow,” the danger of a return to recession isn’t “elevated.”

Rogoff’s concern echoes that of investors, who sent China’s benchmark stock index to its worst loss in more than a year last week. China’s data have been a focus because the nation has led the global recovery from the worst postwar recession."

China says jailing of U.S. geologist its own affair

"BEIJING (Reuters) –
China said on Tuesday the jailing of a U.S. geologist on charges of stealing state secrets, described by the United States as disappointing, was its own affair and other countries had no right to interfere.


Xue Feng, a 44-year-old U.S. citizen born in China, was detained late in 2007 after negotiating the sale of an oil industry database to his employer at the time,
Colorado-based consultancy IHS Energy, now known as IHS Inc.


The U.S. Ambassador to China,
Jon Huntsman, said he was disappointed by the eight-year sentence and that the prosecutor's case appeared "flimsy" and "opaque."

http://news.yahoo.com/s/nm/20100706/...na_usa_secrets