China needs to spend it's surplus funds which are linked to US...

China needs to spend it's surplus funds which are linked to US bonds I read. I think the US has dried up of cash so everyone who was saving it for a raining day is spending it now. China needs resources, and they could takeover RIO to sure up supply of metals, subject to FIRB approval. RIO could supply them Copper, Iron Ore, Aluminium to keep there economy churning over, which would put pressure on BHP, Vale and others to stablise prices. I think you will see Chinese owned companies popping up on resource registers... check out OZ.

So what this got to do with Dow. China spend so it releases cash, which is now available to be reinvested.
So Dow Starts up trend, there will be a fine balance in the next few months, as unemployment numbers increase, and the Dow treading before starting an uptrend.

The numbers we are talking is Trillions of dollars, so you don't just dump it in a day, it took a while for China and others to save for a raining day, so it will take a while for the reinjection of capital in the Markets to increase pace.

Peace to all and good night..