China Surges To More New Highs
Overnight, shares on the Shanghai Exchange (China) surged to new highs again.
The chart above shows the sharpy rally in the FXI, which is the China ETF that trades on the NYSE. You can see that is has rebounded +37% from the lows on 8/16. Not bad, especially if you added to it while the sharts were approaching their 200-day average.
I think this bodes well for the markets. If China is hitting new highs, it will likely pull up many of the emerging markets with it. And if the emerging markets remain strong, it will probably provide some cover for our markets to recover as well.
Now, there could always be some news here in the credit markets to start making things head down again. But if the emerging markets are performing well, it simply removes another headwind from the equation.
The financials are weak today, and that is weighing on the overall market. I do see a handful of growth stocks hanging in there, but they are few and far between.