China’s Best Investment, US T-Bonds

We continue to watch the China Market, specifically the FXI.  It is a key leading indicator broke down on August 14th and still is below the important 41.03 level on a closing basis.  Today an attempt at moving back above that level is underway.  If this attempt fails there will be trouble for all stock markets around the world.  China has extended itself in an attempt to leapfrog in front of others for a recovery.  In my view the recovery will not be as solid as needed to keep the markets at current levels.  Oil and commodities will be affected in a major way.

8:36 AM CDT