Thursday, December 16, 2010

Bears Have to Hurry

I looked at the Hong Kong market today and it dropped off a cliff near the close.  China is much weaker than many people think.   A popping of the real estate bubble there would have huge negative ramifications for what the institutions are most bullish on, which are commodities.  

Today the time frame for a bear raid is probably just 2 hours after the opening bell.  I don't see another late day selloff the day ahead of options expiration.  I do expect early weakness after the weak closes the last 3 days.  But based on the benign action in pre-market, the dip will likely be bought.

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