Friday, January 29, 2010

China is a leading indicator of a market crash

China fell 73% from a peak in October 2007 to a low in October 2008. After that it has retraced 40% approximately.

China shares topped before US and India in October 2007, bottomed before US and India in October 2008. So there is a very high probaility that China will lead the next leg down which seems to be underway.

So all eyes on Shanghai!

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