Shanghai Bear Market Review

 

 

The majority of the world may be fooled by the propaganda of the China miracle rise, but I’m not! Everything regarding China is built on debt as their money printing skills make the USA  look like rank amateurs. What brought the 2007-2009 markets down with toxic investments is now being used in China on a scale not even imaginable! I have a very large following from China but the news is censored and false news is rampant. A chart is about the only truth we can see regarding investing in China.

Since the 2007 peak, the Shanghai index tried the second time to break out but failed miserably so far. I see the secondary top as an ending to an inverted zigzag which started back in late 2008. This “A” wave bottom in Intermediate degree would be the point of origin. Returning back to the point of origin would prove this 10-year-old bull/bear market is just a fake like all the other news coming from China.

China Uncensored is an attempt to give us alternate news and I have watched about 20 episodes in the last few weeks. Search out the “Bike Sharing Video” and you will see how markets really work under communist economic logic!

I have no Gold/Shanghai ratio database setup but at present, we are sitting at about 2.10:1 which means it takes about 2.10 gold ounces to buy one unit of the Shanghai stock index.

If we are lucky the Shanghai could also see an “A” wave bottom when the DJIA does the same thing this year or early next year.

If there is one country that can bring down the entire world financial system and that is China. I think big tech companies trying to get a foothold in China have compromised their own security and all their customer’s security as well. Apple is no exception!  In a tech bear market, all the horror stories will come out as bearish news becomes a top seller!

 

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