11/11/2015 – A down day with the Dow Jones down 57 points (-0.32%) and the Nasdaq down 16 points (-0.32%).
Has China been fixed?
If your think in a linear fashion, which would eventually be devastating to your investment returns, the answer is YES. One Less Hurdle for Fed Hike: China Comes Back From Danger Zone
When the Federal Reserve in September held off from its first interest-rate increase since 2006, the U.S. central-bank head cited growing concerns about China’s market turmoil among the reasons. “A lot of our focus has been on risks around China,” she said in a press conference after the decision.
The above is just another data point that the FED is now a market puppet. The reality is quite different. Take a look at this 3-year Chinese Large Cap ETF (FXI).
Does it look like the worst is behind us?
Well, one can argue that the bottom has been put in place and that the Chinese market is now ready to stage a come back rally. Yet, I can just as easily argue that we are in the early stages of a more severe decline. Think 2000-2002 on the Nasdaq. There are no technical confirmations either way. At least not yet. As a result, we have to rely on the fundamentals. And the picture there is kind of scary.
- China’s factory growth weakens, retail sales stay strong
- Just How Big Is China’s Bubble? This Will Blow Your Mind
- Is China About To Collapse – Drag Us All Down
- Marc Faber Laughs At China, IMF/FED & The Stock Market Stupidity
In other words, it is kind of presumptuous to assume that China has somehow bottomed. If anything, their fundamentals continue to deteriorate. In July of this year I have suggested the following China’s Nasdaq 2000 Crash Is Set For A Bounce And while I was a few weeks early, we did get that bounce. A bounce that might now be over.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. Noveber 11th, 2015 InvestWithAlex.com
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