Another China Sell Off

oil demandOn Tuesday, China recovered slightly from another devastating day of trading. On Monday, however, The Shanghai Composite closed down just under 7%, as deflation fears and slow oil demand worried investors. This marked for the second large sell off for China in just two weeks. It is clear that deflation risks are hitting China at the core due to their large dependence on manufacturing and exports. Even though US markets have not reacted much to the global concerns, if such problems continue, we can be assured that selling pressure will increase.

The Dow opened up down this morning and traded down around 100 points throughout the entire day until the famous remaining 15 minutes, in which markets were able to recover a bit. Commodities are in serious risk of quickly depreciating prices and puts on metals, potash, and especially oil sound real appetizing at this point. In tonight's premium podcast (subscribe here), I also discuss some reasons banks are stalling on foreclosures and why this is problem for our economy in the future. Happy Trading.



    Oil let their be oil.