Asia really led the way down off the 2007 top. Look at those charts again, in case you didn't notice. Japan, China, and Hong Kong were the first off the highs, and they fell impulsively while we chopped around for several months. There is a similar pattern right now, with Japan, China, and Hong Kong looking much weaker than $SPX. Look how far below their 50EMAs they are! Their moves down have more impulsive character than ours, and the bounces have been weaker, so far. I'm inclined to focus on emerging markets shorts, and build U.S. shorts only into strength.
Also, I'm keeping an eye on the $HUI here. That thing hasn't popped back up like I'd expect given $SPX strength, and if it should turn back down anytime this week, it will start to look like it's channeling downward. That thing is a pretty good liquidity gauge.
`BC |
