China Market Follies

02/05/15 12:47PM EST

Let’s get this straight: First they had the rate cut… then they had the rumor of the rate cut… then they had the rate cut, after the rumor of the rate cut…and the stock market went down.

China Market Follies - ch5

The Shanghai Composite was down -1.2% overnight, and is now down 6 of the last 7 days to -3% year-to-date.

It’s now bearish on our trend duration, with the immediate-term risk range for the Shanghai Composite at 2917-3212.

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