(June 12): Which do you believe? Market indices like the Dow Jones Industrial Average or the Shanghai Composite Index, or economic information such as jobs numbers and PMI (Purchasing Managers’ Index) figures? The answer is simple for traders. They believe the market index and trade it accordingly. Given the great disconnect, they should be trading with tight stops because mass demonstrations, civil disorder, manipulated jobs figures and record levels of unemployment make the market’s “irrational exuberance” look precarious.

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