China Bubble Bursting

A few days outside their prediction, but close enough. Thanks to my readers for prompt comments on this this morning. Bloomberg's summary: "China’s stocks plunged, driving the Shanghai Composite Index down the most in eight months, on speculation the government will curb inflows into a market that had doubled from last year’s low."  More from StockTiming:  

Last night, the Shanghai went down -5.0%.  It actually went down 7.7% before rebounding for a five percent loss.    For some time now, we have been mentioning that the Chinese Government was worried about their "stimulus money" moving into the stock market.   Last night there was some saber rattling and fears that the Government may indeed cool their markets.   Some cited valuation concerns, but the real fear last night was about the possibility of government action.

Let's watch this the next two days for a continuation or not.  

Comments

[Al from Oz]

How do you avoid Bull Traps and for that matter Bear Traps.
Al from Oz