AUTHOR: TOWNE SCHERER.COM 07/31/2015: Towne Scherer Private Wealth Management BLOG: U.S. stocks moved lower at the beginning of the week, following an overnight drop of the Shanghai stock market of 8.5%, according to the AP. The WSJ reported that the drop in the Chinese markets is because “authorities are pulling back on measures to prop up the market. Nevertheless, Reuters says Chinese regulators vow(ed) support after (the) markets tumble(d). In light of the volatility of the Chinese markets, CNN recently reported that there is a fire sale on raw materials like copper, aluminum, gold and oil, raising concerns about the health of the global economy. Yet, some pullback in China’s market is understandable when you consider that it soared 150% until June of this year according to an article by BBC NEWs. And, adding more fuel to the fire, Bloomberg reports that Tom DeMark, who predicted the bottom of the shanghai Composite Index in 2013, says that Chinese stocks will decline by an additional 14 percent over the next three weeks, demonstrating a trading pattern that mimics that of the U.S. crash in 1929. Amazingly, on all that news, the DOW is only off its February high by 5%. In other news, the DOW rallied back over 200 points on Tuesday while investors believe that China's tumult will cause the fed to delay (an interest rate) liftoff, according to the WSJ. Apparently, No Ahab, yelling, “Thar she blows!” yet.
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