The Chinese stock markets have been closed for several days to celebrate the new year--the year of the Rat. One wonders what the Chinese market will do when they reopen. During the last three days the less volatile Japanese stock market lost 6% while the Dow lost 3%. Of course the Chinese themselves during this time have experienced the worst storms in the last 50 years with many areas out of power, while others managed to celebrate the new year while listening to reports of a possible recession in the US.
After experiencing a 500% gain since 2006, the Shanghai stock market has already broken below its 200 day moving average. We live in interesting times.
