China remains shaky

The China market began the week on a bearish note, settling -2.7% @ 3114. Price structure is a giant bear flag, and regardless of any upside into the 3400/500s, the Shanghai comp' looks on track for the 2500/2000 zone. How the communist leadership deal with some autumnal upset... will be interesting to see.


China, daily

China, monthly

Summary

*a notable fourth consecutive net monthly decline, with a very clear double spike top in May/June.
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Increasingly, many are now expecting some kind of major fiscal AND monetary stimulus in China. After all.. much like the fed... the level of the equity market is seen as what really matters.

Sure.. some will tout the economy as being key 'data dependant' variable of the central banks, but we know better...  don't we?

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Looking ahead

Tuesday will see a broad array of data... retail sales, empire state manu', indust' prod', and busi' invent'

That will be more than enough to give the market an excuse for some morning action.
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Goodnight from London