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U.S. stocks under pressure on China worries; Dow slumps 0.75%U.S. stock markets were broadly lower after the open on Tuesday, following the release of mixed U.S. housing data, as commodity producers led losses amid concerns over a deeper-than-expected slowdown in Chinese economic growth.::helloooo:

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Hi marcusespiritu09,

I am not able to understand how slowdown Chinese economic growth is affecting U.S. stocks market. Can you elaborate more in details?

 

It's a given that nervous long traders sell on any bad news. Keen short term traders who expect that they can spook weak longs out of the market, try to press the market lower to prey upon the positions of the weak longs. Longer term Buyers, who want to conceal their long interest, use the sell offs as an opportunity to buy shares at relatively cheaper prices and can do so without bidding prices up on themselves when weaker longs are exiting and short term traders are shorting. Long term buyers do not sell when the market moves 1 point, 5 points or 10. Shorts soon realize that they have overshorted and are stuck with a huge position and there are very few sellers who want to sell since the smart shorts have already exited, the weak longs are gone, so they have to begin buying back at higher prices. So, under current conditions, lower china growth will lead to higher market prices soon.

 

Patience confidence and discipline.

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So, under current conditions, lower china growth will lead to higher market prices soon.

 

China has no choice now but to do things the American way....RE-INFLATE.:applaud:

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Hi marcusespiritu09,

I am not able to understand how slowdown Chinese economic growth is affecting U.S. stocks market. Can you elaborate more in details?

 

 

 

A period of economic slowdown amid a larger trend of economic growth. This buzzword is most often used in the financial media and by the U.S. Federal Reserve to describe a period of economic weakness. Central banks often cut interest rates in an attempt to spur the economy through the soft patch. An example of a soft patch would be an economic slowdown due to rising commodity prices, which is believed to be short term, with the economy growing at a faster rate after the slow down

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