Different stocks markets start to adjust yesterday.
In China, once the IPO wave is about to finish, the rush may start to fade out. As inflation is always a concern of Central Government, gradually before announcement Central Government may tune down the hotness first in property market (which is happening now) and second in stock market. Particularly the quarterly GDP has announced; they have sufficientt time to first cool down and re-boot only necessary. On the other hand, over-done will equally harm the government. So, China will not do something crazy to rub both markets hard.
In USA, watching the FED fund rate can be quite a catch - the higher the FED fund rate, the less "free money" will flow in the market. FED fund rate at the beginning of the way had already ascended back to 0.12%, and then to 0.16% on Tuesday and back to 0.25% on Wednesday. What coincedes with the above figures is about the selling of treasuries. At the week of big rise, only 4-week, 3-month, and 6-month T-bills were sold. In this week, in addition to the above 3 types of T-bills, 20-yr TIPS, 52-week, 2-year, 5-year and 7-year are all subject to sales. Up to last night, the bidding of T-bills are hot: bid/cover ratios for 4-week, 3-month, 6-month, 52-week, 2-year, 5-year and 20-year TIPs are 3.54 (at 0.13%), 3.40 (at 0.19%), 3.87 (at 0.275%), 3.95 (at 0.470%), 2.75 (at 1.080%), 1.92 (at 2.689%), and 2.27 (at 2.387%) which are either at high level (like in short-term T-bills) or at improving level (like in longer term T-notes). It reveals not only the policy of the USA government but also the risk appetite of the bigger and smarter investors. Now is the time of taking profits, waiting for an adjustment, and then putting another short-term hunting.