Where Dow Would Go From Here?
Technicians of US mkt got one thing right:: correction has to be done, one way or another, sooner or later, and they must be busy now with themselves all over the charts, trying to figure out where the next support line is, and their efforts may be futile.
China A share drop last night started Dow’s technical correction (not a bear mkt, I think), which is long due. But how much the correction would be , all techies would have their numbers, and one of them would be right, as usual, simply because statistically and probabilistically, one of their guesses will be right on target.
However, if I have to guess, I would try to guess where China A share would go from here. A share led Dow into correction, and it would be up to A share to lead Dow out of correction as well, I guess.
Although the China A share’s bomb on world financial mkt today is historical, and in a typical reverse reading way of capital mkt, reflects the world mkt’s long-term bullishness outlook on China economy and China A shares, the world financial mkt has yet to fully discount the potential and ability of CCP and the nation under its leadership, in building out a Chinese-style capitalist economy, with its unique CCP capitalism model.
As to the short-term China A share movement, I would have to look more from CCP’s angle, as quoted in my previous post::
现在的暴跌正好进入了管理层想要的轨道，相信再跌不远，就会有消息出台，一则稳定股市，二则既定政策按计划实施。
