The China Impact on Global Market

The stock market in China have been dropping rapidly for the past two weeks. At the present moment, the moving average crossover as per the chart has shown a downward pressure in the near term.

The stock rally which we have experienced was initially triggered by China stock market. And my point of view is that we might be going through a series of correction. There might be further downside to the Singapore and US market. Commodities counter will be under pressure and stock prices for them based on my view would drop a futher 10% or when the China stock market has stablise and stop dropping so dramatically.

In the mean time as a trader, you might wish to look at opportunity to short commodities related counters whenever it has rally.