Watching the mass psychology behind stocks can be fascinating. When markets ascend dramatically, watch the flowery descriptions of corporate brilliance, the long runway to success and the approaching tailwinds caught just right by the master skipper. Such appears to be the case in China recently seeking to punish its short sellers.
When stocks move higher expect a low correlation to market manipulation investigations
When stocks move higher, outwardly the subtle performance driver focus is found in the human manager, the overall economy and green pastures. But when markets inevitably head south, it’s time to blame the risk managers, those short sellers who might be hedging; or more likely those speculating to generate profit in a “free market.”
Such appears to be the case...