Chinese Bear Market! Did we hear it right?

I am writing on this forum after a loooong time, but I hope to be more frequent.

TODAY, instead of the levels and targets and stops, lets talk about the Financial Markets from a different and broader perspective.

Bloomberg is 'shouting' of the onset of the Chinese Bear Market. In fact from the time I read it I was both amused and confused !

Think of it. The world's fastest growing economy , on which depends the world's growth rate, the world's metals market and the world's hope - is in a bear market. And the WEST (US and Europe) - which actually took / pushed everyone into a recession, are seeing unprecedented rallies and 52 week highs !!!!!

Can any fundamental analyst please stand up and explain this ?

It seems everything is 'relative' and Einstein's theory seems to be working better in the financial markets. Whether we can say this is 'Market Behaviour' or a WEST-led scandal, is still not clear.

But the next thought that appeared on my mind was - what will happen to the world's second fastest growing economy ? Will it have the same fate as the fastest one or is it destined to something else?

Inflation and high property prices are China's concern. Oh, but then, aren't these also India's concern?

Its surely a strange world we live in.... and as I indicated in my current month newsletter- "Warren Buffet and Peter Lynch may thank their stars that they were not born in the last 20 years"!!

CA Rajiv D Khatlawala
Author: 'How to profit from Technical Analysis'
Publ: Vision books.

Actually Rajiv bro all news media is showing that china and Indian on top on growing list and also showing they are at mercy of FDI of european FII but they dont keep in mind 300 crore peoples purchasing power which wont allow these two countries to fall

By technical definition. 20% fall from the peak is bear market. Less then that is just a correction. Chinese market made peak of 3478 during 2009 bull run. Today it is at 2710 which approximately fits the theoratical definition of bear market and that's what media is encashing on.

There were all the signs that bubble was building up in China in Real estate and stock market. And any tightening by central government was as obvious as day and night cycle. Market and industry is just reacting to it. China market is second worst performing market in 2010 ytd.

Can it happen in India ? Why not ? Anything is possible in market ?
Will it happen now ? I have no idea ? My guess is as good as yours ?

By the way, Nifty close on 4-Jan-10 was 5232 (On 1-Dec-09, Nifty was 5122) and we are more or less at the same level on 13-May (@ 5173) after 4 or 5 months.
Is the trend up ? Does Bull market go sideway for 4/5 months with +/-1% return ?

I leave it to you to think about it.

Happy Trading

Chinese market's are already in Bear Market if you go by strict bear market definition. On charts, as of now it appears Hang Seng and Taiwan are nearly following the same structure. AW10 was right in pointing out that such moves which the market's are experiencing are not at all a good sign. In fact, I'll go a step further and suggest that such moves is extremely extremely worrying as far as health of market goes. If we also consider the broad market health based signals, most of them are badly out of shape and are depicting negativity lurking in the system. This is also one of those few times when Western Countries Indexes are more healthy price structure wise than Asian counterparts. Hanging on to Earnings, RBI policy or Monsoon is seeking another reason or "hope" for market's to move forward. Whereas ignoring broad based market indicators is going to be one costly decision which many will repent if indeed the market's begin to correct viciously.