The past week was all about China, and their pathetic efforts to goose their stumbling, debt-ridden Communist economy. It worked, to be sure, for the few days they were pumping the hell out of it, but I would like to point out the relative position of the emerging markets fund over the past few years.
An even cleaner representation is found with the EFA, which is once again banging against multi-year resistance.
One country in particular that seems quite prone to a fall is Brazil, by way of EWZ.
You can see, even at this great distance, how swift and lofty the ascent in Chinese stocks was. I wouldn’t short it, but I think this sucker is going to burn off most of this recent pop before October is over.
Incidentally, the entire Chinese stock market gets shuttered during “Golden Week” which will run from October 1st through 7th. I had never heard of Golden Week before but evidently the Communist dictatorship tells people to stop working and go travel around like tourists during three separate weeks of every year. Sheesh, are they trying to become Germany or something with all this not working? But, hey, at least they haven’t secured a Juneteenth yet. That’s ours, baby.
