China stocks plummet 20% from recent highs. USA stop sell orders set to trigger on a 3% decline

60 Minutes said
American and European countries are cleaning up their green house gasses by outsourcing the dirty and toxic work to developing countries. Communist China was consequently shown worldwide to be the filthiest country with the most toxic air in the world and of course the most socialist country as well with thugs like corrupt ACORN running their the business. The news helped US treasury sales causing interest rates to decline.

Reuters said: Consumer spending is up, but morale sinks. Worries over high unemployment battered U.S. consumer confidence to a four-month trough in August, while spending rose modestly in July, indicating the economy faced a rocky road to recovery. The Reuters/University of Michigan Surveys of Consumers said on Friday its final index of confidence for August fell to 65.7, the lowest since April, from 66.0 in July.
"This tells me consumers are still in a rebuilding phase. It's clear to me that we cannot count on growth through next year as long as consumers are still on the ropes," said Christopher Low, chief economist at FTN Financial in New York.

Bloomberg said: The bounce from the first August measure indicates consumers turned more optimistic toward the end of the month as data showed home prices settling and as they benefited from the “cash-for-clunkers” plan. At the same time, a jobless rate that’s projected to reach 10 percent by early 2010 and stagnant wages may make the gains difficult to maintain. The bond market rejects Bernanke recovery as 10% jobless rate looms. The bond market isn’t buying all the optimism over the end of the global recession. The Federal Reserve will be unable to prevent the trillions of dollars in government stimulus pumped into the U.S. economy from stoking inflation later in 2010, a survey of business economists showed. Currently the mutual funds, pensions and endowments are unloading U.S. consumer stocks at the fastest pace in at least 14 years.

First on FOX: SEC Chief Mary Schapiro says we need more regulators in plans for reviews and new Wall Street regulations.

Market forces August 31

We hope you took your recent spectacular short term profits and have cash set aside. It is time to be cautious. Japan elects a lunatic leftist socialist government for the first time yesterday,

Asian markets were down sharply last night. Communist China down -6.7%, socialist Japan down 0.5%, India down -1.6%, corrupt Jakarta down -1.6%, and Hong Kong down -1.9%. While the mainland Chinese have the traditional Stalinist government run economy, Hong Kong has Hitler's version of socialism where the government supervises existing private management. Hitler's version is also the type Obama chose for the USA and is set up to allow private capital investment while the government and workers hold control.

China realizes many of their companies are insolvent and that they need to be shut down. This is their first reality check and their market could drop 60% to 80% as happened in Russia when they had their first reality check in the 1990's.

European markets are currently mixed in a range from +0.8% to -1.6% this morning.

US market futures were moving lower at 7AM EST to about -0.6% before the opening today.

Now is the time to finish taking profits to have cash. A sharp decline is now possible as funds are fully invested and have hair-trigger stop sell orders in at about -3%. Our strategy now is to continue to invest in stocks in sectors typically when they are out of favor and to take profits that exceed 5% in a wk and 10% within a month. Profits that high and fast are not sustainable in a recession. As markets recover it is necessary to estimate the potential stock price appreciation level. Typically we are now seeing a 5% to 10% rise relative to previous highs and then a rapid fall back as hedge funds unload shares near the price highs.