Correlation is not causation. However when trillions are wiped out in the Chinese stock market sell off one wonders if it has international effects. Some would worry a little.

Leverage in markets is a funny thing, losses elsewhere tend to bring losses closer to home. The SSEC has fallen 50% rather quickly and the Chinese Govt. is threatening BUYERS that they can't sell. Question: Who wants to put new money into a market when you get your name put into a Govt. black book when you want to sell? No one who is sane! It takes NEW money to get NEW highs. So unless the POBC is going to provide all the NEW money then the SSEC is very unlikely to do well, of course stranger things have happened. ha! 

NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net 

Investing Quote…

..“In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be.  The thing to do is to watch the market, read the tape to determine the limits of the get nowhere prices, and make up your mind that you will not take an interest until the prices break through the limit in either direction.”..

Jesse Livermore

..“How many millionaires do you know who have become wealthy by investing in savings accounts?”.. 

Robert G Allen

…“People somehow think you must buy at the bottom and sell at the top to be successful in the market. That's nonsense! The idea is to buy when the probability is greatest that the market is going to advance”… 

Martin Zweig (The inspiration behind a number of Martin Zweig's methods came, from Jesse Livermore).

..”Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it”..

Warren Buffett

In the short run, the market is a voting machine, but in the long run it is a weighing machine.

Benjamin Graham