Put This Analog In Your Pipe and Smoke It

If the analog holds, the ChiNext is going to peak in the next 10 days. If there's a similar double peak, the market has until December before it turns south and doesn't look back.

Think of the different the responses of the American government the Chinese government. There was virtually no intervention in the market at this point in the U.S., Bush's tax cuts were a year away. Interest rates weren't even cut until January 2001. On this chart, the Nasdaq is in July 2000. In China, the government intervened incessantly, and yet the path of prices is shockingly similar to that of the Nasdaq in 2000.

Exit question: was Chinese market regulation completely meaningless and merely an expression of the Chinese political response to the same mass psychology/social mood effects that caused nearly the exact same changes in the Nasdaq market 15 years ago?

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