TraderWise

Last week, the market staged a huge rally on strong volume. It all started Wednesday when China's PMI came out slightly better than expected. The index rose to 51.6 and that was better than the prior month's reading. However, it was worse than expectations. China's economy has gradually been weakening in recent months. The government has imposed higher reserve requirements and it is trying to contain speculation. This morning, China ordered steel factories to stop production for 20 days. Demand is slowing and they do not want to be caught with stockpiles of inventory.