After spending six weeks in a sideways, coil-type of pattern at the bottom of its August 2009-June 2010 bear phase, the Shanghai Composite has broken down into new bear-market low territory.
Gold prices and the Sept 10-year Treasury note futures are firm again this morning, extending last week's rallies and pushing up towards a test of their recent bull market highs.
The iShares 20+ Year T-Bond ETF (TLT) has recovered sharply from this morning's plunge, which more than any other market is warning us that perhaps the clamor to get back into riskier assets based on the yuan story is overblown.
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