and it's the some that will never learn (law of numbers), as well as to keep the money flows going and bring others into things...those that can continue to make $$$ going up, and learn to catch things back when it retreats are the ones who continually do well.
With all those short positions (ES, RIMM, MA, AAPL etc.) you claim to have built up over the last couple of months, isn't it amazing you're still posting?
I may be wrong on this...I don't believe the Chinese markets can be shorted -- it is against the law to short stocks. If it is true one can NOT short stocks in the Chinese markets, it'd make an interesting spectacle when all the sheep decide to sell, and there's no one left to buy or cover the shorts. With the 10% daily limit movement rule, it is possible the market might not trade for days as every day goes limit down 10% on many stocks.
Watch TAIWAN, Market is up over 3% in a week and 12% in less than a month, TALK ABOUT OVERBOUGHT!!!!!!!!! These markets are out of control. Im sure Taiwan will break 10,000 and head to 15k by the end of 2007, but talk about a totally irrational market!!!!!
Going back to the essentials, asset prices are not how much they are worth, but how much investors perceive them to be worth. The irrational behaviour of the emerging markets say China are largely due to the domestic demand for high yield investment (the interest rate is really crap and there is lack of financial products/complete market), and partly due to the demand for Chinese equity as a global portfolio allocation. Having said that, everything has a value, this kind of over-reaction will eventually lead to a sell off and return to value.