Why Blame China on DOW Dives!

Posted on Posted in Daily Blog Post

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This panic decline is not over! Expect more ‘whipsaw’ and downside. See the chart below!

Dow tumbles 470 Dow points. The fat lady has not appeared on stage yet.

Almost all Western analysts blame China’s data. The culprit was China's purchasing managers' index (PMI) for August, which fell to 49.7 from 50.0 in July. Any number below 50.0 in the manufacturing PMI means that a contraction is taking place.

So what? Is there any problem there with China itself? Chinas growth is still 7% and even down with 4%, it is still much better than any major nations in the world.

Yes, there is a problem with U.S as the rate hike (fear) is round the corner and earnings of the companies are going to be affected.

At the same time, it is all about TIMING CYCLE. Yes, fundamentals are important but Timing is the key to identify the turning points.
All my followers know that I have warned about the panic decline since May (via blogs) and Feb (via paid newsletters)
Please note that Rate fear is groundless. Rate hike eventually is not impacting the DOW and SPX. In fact, they will both rise up in tandem for a while.

My charts suggest Mid-October will be a major, final low for the DOW, before the markets take off on the new bull Cycle that may last into 2017 before the historic crash.

Click the chart below.

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