On the 16-17 June 2011 under a Biblical Omen of Doom the Shanghai Composite Index turned to water…

Just one week later the Chinese Market had failed to sell off and has the look of a Classical Bear Trap.

All this Moon talk I guess I could call “Technical Analysis Carl Jung Style”.

Financial Markets tend to be driven by our deepest darkest fears and the Australian All Ords also put in a low under the blood red moon. The reality for Stock Punters so far in 2011 has been a conga line of fear clusters.

However, for my part I have nothing to add to the advice of Buffett (The Sage of Omaha) —

“Be greedy when others are fearful”!

Charts thanks to Bespoke Inv. Group.

As a postscript I would like to direct you to a speech by the former R.B.A. Governor Ian Macfarlane AC, posted on the excellent Mosman Council website.

declaration of interest

Stoner is a journalist and not a licenced securities advisor.
Stoner owns Public Ordinary Shares.