Monday, August 31, 2009

Weakness in China and Among Materials Stocks: Important Intermarket Theme



With China (FXI; top chart) well off its early August highs, note the relative weakness of Basic Materials companies today and on a one-week basis per the excellent FinViz site. If growth in China is slowing down, demand for raw materials should weaken--and that puts a drag on a sector has been a leader since the March stock market lows.
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