Chinese Stock Market is Cratering

[planosteve]

After pledging, investing and otherwise guaranteeing the Chinese stock market to the tune of 10% of GDP, and intervening on at least 40 different occasions in the past month ever since China's stock bubble burst in late June, with the subsequent crash nearly taking the Shanghai Composite red for the year, overnight China officially lost control for the second time, when after a weak start to the Monday trading session, things turned very ugly in the last hour, when the Shanghai Composite plunged by 8.48%, closing nearly at the lows, and tumbling some 345 points for its biggest one-day drop since February 2007 and its second biggest crash in history!

http://www.zerohedge.com/news/2015-07-27/chinese-stocks-suffer-second-biggest-crash-history-1500-companies-halted-limit-down

[planosteve]

We may be OK! Ken Moriff has just issued a statement:

The last time that we saw commodities behaving the way they are now was in late 2007, and we all know what happened after that.

Many of you saw me on CNBC where I said that my concern was that the markets are beginning to “rollover.” The operative word here is “concern.” As you know, I do see a bear market coming next year but I do not see it beginning until after the end of this year. Almost every bear market has begun after a final surge in the market.

We have not seen that surge yet.