There is an connection between the panic selling in BIDU on thursday and the panic selling in India last night - popular media chalks it up to two very specific events - the words of an investment group and a regulatory threat - but these events enjoy a specific relationship - there has been a giant inflow of capital to emerging markets, and sooner or later there is going to be a stampede to the exits. These markets are very fragile.
Here is the Indias' regulatory threat news for Foreign Investors. http://www.bloomberg.com/apps/news?pid=20601091&sid=aIo7Ze6HOhrs&refer=india Regards, Suri
More News on selling in India... http://www.bloomberg.com/apps/news?pid=20601084&sid=a_LMpeDnVNQU&refer=stocks
Thanks for posting that link. End of the SENSEX run? Or just a short term shakeout? I vote the latter. China first, then india.
Here is an BSE SENSEX chart with Fib./Gap s (from Oct. 13) Regulatory news for Foreign investors could be one of the series of news to trigger smart money out-flows... See IFN, IIF yesterday, where foreign investors own majority... Regards, Suri
1. Oct 17, 2007: The stock market benchmark Sensex crashed by 1,743 points within minutes of opening, prompting suspension of trade for an hour. The 30-share index, Sensex, tumbled to 17,307.90, a fall never seen before.
Be careful with any emerging market or stocks that their main activity is overseas (BIDU). The US markets still rule the main trend, and it would be hard for an emerging market to rally when the US isn't.