The next 5 days will be a very important learning experience for traders trying to sift through the rubble after China’s highly-publicized currency devaluation and subsequent shockwaves through the world markets.
American markets have begun their recovery, with the S&P 500 (ETF: SPY) and Dow-Jones (ETF: QQQ) indecies both recovering some of the losses. However, the next few days will be critical for one big reason: the markets will not be open at the same time, so there should not be any spillover effects.
China is currently engaging in World War Two victory anniversary celebrations, closing the stock exchanges while the events take place. After that, the US markets will be closed for Labor Day, effectively segragating the actual market forces from each market to itself. This means that Chinese instability cannot cause serious intra-day trading jumps in the US, and equity flows in the US will not work for or against Chinese markets.
If you want to invest in Chinese assets on HTMW, check out the MCHI ETF, which is heavily focused on Chinese mid-sized companies!