(Click at the pictures to enlarge)The Shanghai composit found its bottom already in November 2008, then traced out a irregular flat A-B-C correction. Wave C ended on September 18 and we are currently moving down in wave 3 of C. This wave will problably be the longest and seem relentless driving the market lower.
In late 2008 and early 2009 China was the country to bring the global economy back on its feet, because no other country would be able to. At first glance it might have seem likely, but using the Elliott wave principle it would have been clear from the beginning that it wasn't a option. We have seen many clues that they (The Chinese) would not be the new driver of the global economy. The Baltic Dry Index topped already in early June telling us that global trade wasn't back to "normal". Copper has rallied strongly in a double Zig-Zag as red wave [B], and all odds favor that it found a top in late August as it was also the case with Crude Oil. Crude Oil has also finished its red wave [B] and has begund moving down in the powerfull red wave [C]. This wave resemble the pesonality of a thrid wave.
All of these small clues told us, that things wasn't so fine as the news, CNBC and the talking heads of Wall Street tryed to make us belive. I'm sure they themself belive, that what they a saying is the truth, but I'm certain that they are completly wrong and things will become much worse during the late part of 2009 and most of 2010.
I would rather be prepared and wrong, than unprepared but right!
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