Remember February 27th? The market had a big drop on a nearly 10% correction of the Shanghai index. It looked like the bull market had finally run its course. It looked like the end was nigh.
In hindsight, it was just a little blip, a little speed bump on the road to 14,000 for the Dow. Key support was at 12,000, which held. China's market soon recovered and went on to set new highs. All was well.
If the last drop was called the "Shanghai Surprise" this one should be called the "Subprime Surprise." Except no one should have been surprised. Shocked is a better word - shocked that these losses were allowed to be disclosed! Once again we find ourselves in the same position as the early spring. Things look dire - it looks like this might be the end of the bull market. Wednesday started off with a triple-digit rally that melted away into a triple-digit loss.
Will history repeat? Time will tell. Stay tuned...
Remember February 27th? The market had a big drop on a nearly 10% correction of the Shanghai index. It looked like the bull market had finally run its course. It looked like the end was nigh.
In hindsight, it was just a little blip, a little speed bump on the road to 14,000 for the Dow. Key support was at 12,000, which held. China's market soon recovered and went on to set new highs. All was well.
If the last drop was called the "Shanghai Surprise" this one should be called the "Subprime Surprise." Except no one should have been surprised. Shocked is a better word - shocked that these losses were allowed to be disclosed! Once again we find ourselves in the same position as the early spring. Things look dire - it looks like this might be the end of the bull market. Wednesday started off with a triple-digit rally that melted away into a triple-digit loss.
Will history repeat? Time will tell. Stay tuned...