Last night China was down 9 percent. The smart money has been selling. It’s good fot the shorts and great for CNBC. They have had nothing but Cramer to help with ratings. Now there is a chance that one of the old timers gets punched on the exchange floor.

I may just watch today. Bob Pisani could get sucker punched by a trader long the Chinese ETF.

I speculated that ‘China Blew a Top‘ back in the beginning of January. I recommended taking profits there and you had two months of chop to do so.

I also said when the glorious Olympic Games roll through Beijing, things will look sweet but their market will already be in deep decline.

No chop today, just a bloodletting.

The same panic does not await the US and if it does, would be a gift. I would like to see the Private Equity guys be reminded about losses. That’s the one area of stupid excess that will end like the China market.

Watch Gold and the US Dollar today. I am.