10 replies to this topic

[Tor]

I cant believe I am saying it, but if we get a flush down in the spx to the 1511 area I am gonna buy. I doubt history will repeat with so many people on the China "sell off" bandwagon. Should go to new highs on the move. Good trading.

[redfoliage2]

I cant believe I am saying it, but if we get a flush down in the spx to the 1511 area I am gonna buy. I doubt history will repeat with so many people on the China "sell off" bandwagon.

Should go to new highs on the move.

Good trading.

Sorry, it's down 6.5% to 4053. Bubble is leaking now. Historically, a correction at least 30% took place in the following months after a raise of stamp tax on trading.
http://ichart.financ...m/w?s=000001.SS

Edited by redfoliage2, 30 May 2007 - 03:45 AM.

[redfoliage2]

I cant believe I am saying it, but if we get a flush down in the spx to the 1511 area I am gonna buy. I doubt history will repeat with so many people on the China "sell off" bandwagon.

Should go to new highs on the move.

Good trading.

Sorry, it's down 6.5% to 4053. Bubble is leaking now. Historically, a correction at least 30% took place in the following months after a raise of stamp tax on trading.
http://ichart.financ...m/w?s=000001.SS

The Stock bubble in the US is ablout to do the same.

[OEXCHAOS]

P/E are not at bubble levels. Supply and demand still constructive. Don't trade it like a bubble. It's not. The only real over valuation is in the RUT. We've finally got a sentiment picture that's not 100% supportive of higher prices, but that's about it. The sentiment says it's not a bubble, too. Now, India and China? THOSE are bubbles. Mark

[BearItch]

Whatever happens today, it should not be a repeat of 2/27. That would be too much to expect given it just happened. I don't think the market is so regimented so that history repeats itself so close in time. Now if the Shanghi express got rolling to the downside on a multiu day correction taking out more than a token 6.5% (everything is relative), then things might get interesting. But I don't think the market conditions here in the US are the same as they were on 2/27. Back then, things were ripe for such a correction in our market. They are not as ripe now.

[redfoliage2]

.......They are not as ripe now.

I see they are more than ripe now.

[BigBadBear]

Well I am lined up on the short side. Greenspan never fails in these situations. Its seems like the 'boyz' want this market down..probably to buy at lower levels. So 1510 is minimum for today

[Sentient Being]

Interesting that even though China down 6.5%....the rest of the rim held up fairly well. Maybe this time the US market doesn't chase after China.

[James Quillian]

I will be surprised if the Dow is up or down more than 10 points today.

[TTHQ Staff]

More details on China stock tax increase:

China Triples Tax on Stock Trades

HONG KONG, May 30 — Chinese stocks plunged today after China’s finance ministry announced early this morning that it would triple the tax on stock trades, a move aimed at braking what many business executives and economists inside and outside China now see as a stock market bubble.

Just seven days ago, the finance ministry and the State Administration of Taxation took the unusual step of publicly denying that they had any plans to change the tax on stock trading. The finance ministry reversed itself with a statement on its Web site early this morning noting that increase had been ordered by the State Council, the cabinet of the Chinese government.

By raising the tax, the government now runs the risk of being blamed by the Chinese public if it sets off a stock market rout. A composite index of yuan-denominated A shares traded in Shanghai and Shenzhen plunged 6.3 percent at the opening today, partly recovered by midmorning for a loss of 2.7 percent, then slumped to post a loss of 6.3 percent again by midafternoon.

Millions of citizens have invested their savings in a market that has nearly quadrupled since the start of last year. New investors, many of them with no experience in trading stocks, have been opening brokerage accounts at a pace of roughly 300,000 a day for the last two weeks, with a record 455,111 accounts opened on Monday.

The Chinese government has long used changes in the stock trading tax to influence share prices, raising or lowering the tax at least six times in recent years. Investors have watched the level of the tax carefully as an indication of the government’s position.

The market had rallied sharply for the past week as investors interpreted last week’s decision to leave the tax unchanged as a sign that the government would let the market set its own course.

The finance ministry is tripling the stamp tax on stock trading to 0.3 percent, from 0.1 percent, effective today. An early report of the finance ministry’s decision by Xinhua, the official news agency, which came late in the American trading day on Tuesday, tempered trading that was initially buoyed by takeover deals and signs of consumer confidence in the economy.

Investors worried that the increased tax could be followed by a sell-off like the one on Feb. 27 that sent share prices down nearly 9 percent in Shanghai and set off a brief drop in stock markets worldwide.