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Why US can rally while Shanghai stocks get smoked

China plunge has Gartman's interest

The plunge in hot Chinese stocks is likely to be temporary, and unlikely to spill into world markets unless it becomes prolonged and triggers a recession in the world's second-biggest economy.

For now, analysts see developed markets, like the U.S., Europe and Japan, kicking higher despite the turbulence Thursday that shaved 6.5 percent off the benchmark and 6.2 percent from the Shenzhen component index.

"Traders will enjoy this sort of a move. We've seen this many times in the last several months, where you have a 3, 4, 5 percent down day and then everyone goes back to buying," said Paul Christopher, head of international strategy at Wells Fargo Investment Institute.

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