We are seeing another big crash in Chinese stocks as they triggered a new circuit breaker last night that the authority manually stopped the Shanghai stock market trading when it tanked at 7%. This triggered another worldwide selloff today, a phenomenon we saw similarly in Aug last year. Given it was a manually enforced hard stop for the China stocks, there is a good chance more panic selloff may resume when it starts to trade again tonight (US time). If so, a hard selloff may also spread out to other markets tomorrow. If this is indeed the case, I will be a buyer into a gap lower tomorrow morning. While I'm quite bearish in general for the US market for this year, I don't expect this will be a straight line downward. Given the last 2 days of selloff of 2015 has already put the market a bit oversold, this hard selloff will make the oversold more extreme, which will present a great short-term bullish trading opportunity for brave traders. I'm anxious to see what will happen tonight and tomorrow....
A quick word on WMT's performance today. One word: bullish!! WMT again is showing a textbook bottoming process with a clear start of a bullish trend. Gapping lower at opening but closing higher when the overall market is in panic selloff should give WMT a star award. If you bought WMT when it declined towards $60 this morning, which is the target I was expecting for a short-term weakness of it, you would have made almost 2% gain already by closing today. I like WMT more with its performance today!!
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