On week chart, when Shanghai comp crashed down from high close of 5166 to 3686,
their gov passed a law to ban selling of stocks for 6 mths by directors n big s/holders of plc cos.
This absurd move only helped a rebound to 4080 lasting just 2 weeks.
Then last Fri it closed < 3686 to settle at 3507. Closing below this magical #, 3686 provides
a bad sign going into next few mths. Today Mon. it's now starting the week with a scary drop of 7.44% at 3246. It could go crazily down to 2500 !
Next Fear is, the china cos. could enter into trade war by dumping their products.
For many years our furniture stores struggled n had to lobby US to help to impose
anti-dumping from China.
In biz, Pricing dynamics always take over the driver seat. Discount salesman gets the orders.
Chinaman knows this classical trick too well.
Risk is our exporters of the same common products could be affected n might not be in safe
position for too long. Profits can easily disappeared into thin air. Mkt could take mths to go all the way down to pureBear. Cos might take q to q to show decreasing activities. It's all about the right TIMING n perfectly acting on gut feeling.