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What do you look at to tell a market has topped? MarketWatch reporters posed that question to investment strategists, traders and technical analysts as the U.S. stock market trades at record highs and the Federal Reserve plans to rein in its massive bond buying program that’s kept interest rates very low. From the price of oil to small cap stocks in Spain, the answers provided a broad mix of insight.
While the U.S. stock market is trading at record highs, three blue-chip Chinese companies -- Petro China PTR +0.42% , China Mobile CHL +3.69% and Yanzhou Coal YZC +4.30% -- are trading near 52-week lows, points out Brad Lamensdorf, chief investment officer of the Lamensdorf Market Timing Report. All three stocks peaked in January and have been skidding ever since. Given the key role China plays in the global economy, “this looks like a bad sign for US stocks,” Lamensdorf said. Interestingly, he adds, these Chinese stocks broke down before the Shanghai Composite Index hit a 52-week high in mid-February.
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