The Shanghai Composite May Have Bottomed Thanks to the Chinese Gov’t

Via Global Macro Monitor

Posted on January 21, 2012

Shanghai’s channel surfing Panda bears are speaking with a little higher pitch this weekend after getting their ‘hood caught in a vicious squeeze and reversal. The stock index has bounced 8.7 percent off its January 6th lows after falling 31 percent from last April’s 12-month high.  The Shanghai was down 39 percent from its August ‘09 post-crash high before reversing earlier this month.  Hugh Hendry nailed it.

We don’t know if the bottom is in but it seems clear to us the government doesn’t want the stock market to fall any further. They have unleashed the Dragon on the bears with a series of policies to prop up the market.

To read the rest and see the pretty graphs, go here.