Wed Septs 21, 2011
Jim Chanos a famous short seller, has been short China for some time. He is long Chinese casinos, I am skeptical on that one, but this is a good summary of the train wreck coming for the Pacific Rim. As we have warned all the countries leaning against China are going to tank once this become reality.
The indicator at bottom shows the correlation between SSEC and the USA QQQ, which is to say there is none of late. This is technically known as a divergence. Shanghai is headed south while the US still celebrates luxury goods like Ralph Lauren. This bear market in SSEC is now ten months old. Yet the world still believes China is the engine of growth. Clearly this is not the case.
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