Don't Take Your Eye Off The Ball Here: Keep Watching The Shanghai/Hong Kong Crash

The Korean crisis is fascinating, and all of the sudden it seems possible that Europe won’t be able to firewall Ireland (because if Ireland doesn’t accept the bailout, what can anyone do?)

But keep paying attention to China and Hong Kong, which are calling the shots right now, especially in the commodity markets.

Both markets fell hard last night, bringing commodities sharply lower, particularly the industrial ones (copper, palladium, oil, etc.). Shanghai is now off 10% from recent highs.

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