Some thoughts on Disappointing China PMI.
If this data really suggests that the worst is yet to
come in China then why did the CSI 300 stayed afloat it's Nov/Dec low? And why
did the price today not able to close below yesterdays open? If the
markets think that China is going to get "Slower" or even "More
Slower" (pun intended) in the future confirmed by the PMI data then a
drastic sell-off should have occurred and a Lower Low should have been formed,
but this doesn't seem to happen in the price. We think the price action is a
confirmation that the Chinese slowdown that the market is thinking (as
shown in Financial Media) is already reflected in the price, if not
over-reflected.
