thursday an up day, page-4

jd, just for the record, dow didn't break back above its former uptrend line on the esignal chart tho it may have done on one of the bucket shops charts. Its a very big spinning top doji indicating a high level of indecision imho.

But honkers may well go bananas today because of the decision by the chinese govt to review arbitrage between shanghai and honkers. That is, when a company is listed on both, they may decide to allow swaps between the two markets. Given that the pe on shanghai stocks is up to double the pe of the same stocks on honkers markets, the usa market reaction was to drive up the pe of the honkers listed stocks to match those of the shanghai listed stocks. As the chinese govt was hoping to lower the pe of shanghai listed stocks by announcing their move, I'm not sure the usa market reaction is a good thing either in terms of influencing the govt review or in the internal health of the hk market. It just duplicates the bubble.