Direct quote from the article you cite: ``Money will come in anyway to speculate on the yuan and maybe the asset markets,'' said Stephen Green, head of China research at Standard Chartered Bank Plc in Shanghai. ``We really need some rate hikes to tackle inflation because other tools are simply not effective enough.'' The Chinese Government won't have to worry too much longer about the speculator-drive price inflation. The speculators will withdraw whatever remains of their speculative investments after the great fall. It will be blamed on the slowdown in the U.S. economy and downtrodden U.S. consumers. I mean, c'mon, it's not like Chinese companies lack clarity, openness and accuracy in their balance sheets, right?
This market has done pretty much nothing since Jan 23rd and it will probably remain that way for a while. It will probably take a good GDP number to force the market out of this channel. Nevertheless, there is plenty of opportunities to make money on the long side.
The Feds came to our rescue, "manipulated" and " shoved" the SPX into higher grounds with all that power and might behind those green curtains! What are you going to do about it? Is life unfair? Of cousre it is and thats my point.
Well here we are, it's exactly 3 months later and I am following up on your prediction. Exactly 3 months ago, the dow closed at 12582 and we are currently trading at 12548. Although the market did sell off immediately after your prediction, we are right back where we started.
BillySimas, Where is the logic? Of course statements like threadstarter depends on your "window" or "horizon" (short-, medium- or long-term). But for me the correction and the subsequent rally was an excellent opportunity to profit. Now I agree it is time to be raise cash (going short). p$
------------- Honestly, I don't know if a 1k spike it the Dow would cause investors to rush into this market. I feel this market will bottom out gradually as opposed to a V bottom that so many are accustomed too.