Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (70881)	11/4/2007 1:04:17 AM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

You will have to separate the Chinese stock market and the broad Chinese economy measured by the so-called GDP. The stock market may crash, but the Chinese economy will not, at least not in the next couple of years. Yes, it may slow down from 10-11% growth to 6-8%, but will not crash. BTW, Joseph Battipaglia is bearish<g> economictimes.indiatimes.com "By midday on Thursday, the S&P was down about 1.4%. “It reminds me of the late ‘98- ’99 period. We were calling it a bull market because gainers were big-cap names and they helped move the indexes, but it was not sustainable,” said Stifel Nicolaus market strategist Joseph Battipaglia. One warning sign, Battipaglia noted, is that half of the components in the S&P 500 are trading below their 200-day moving average, a negative technical indicator for those shares. Another sign of trouble is the steady fall in the number of stocks rising on a daily basis. On a 20-day moving average, October began with New York Stock Exchange advancing issues outnumbering decliners on a 6-to-5 basis, but ended the month essentially even. By the same measure, the Nasdaq started the month with roughly an even number of advancers and decliners each day, but ended it with decliners outnumbering advancers by 15 to 14. Despite the growing ranks of decliners, sharp gains for stocks such as search engine Google and Research in Motion, Apple and Microsoft have kept indexes above water. Each of these stocks rose more than 20% in October and combined they added $154 billion in market cap in the month. By contrast, the entire S&P 500 rose $185 billion in value during October. Meanwhile, investors shunned financial stocks, which make up about 20% of the S&P 500, after several major names, including Merrill Lynch and Wachovia reported big write-downs related to the mortgage market crisis. The S&P financials sector fell 2% last month, the worst-performing segment of the index. "