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Bad Omen For China

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It’s kind of tough to know what to make of this one. A total solar eclipse swept across China on Friday plunging the Great Wall into darkness one week before the Olympics.

Eclipses were once considered dark omens by ancient astronomers and in China peasants would bang drums to scare away the dragon they thought was eating the sun.

In sharp contrast, modern Chinese view this event as particularly fortunate as it comes exactly a week before the torch is lit in Beijing.

They’re hoping the Olympics will usher in a new era where China is once more as modern, wealthy and important as it was more than 10 centuries ago, and that the Olympics will showcase their nation’s achievements.

That's particularly poignant right now with China’s stock market down some 45 percent.

Valuations in China are still ridiculously high, says Tim Seymour on Fast Money. Personally I’m short the iShares FTSE/Xinhua China 25 Index against stocks that I love in China. But for smaller investors I would be long the FXI on a 6 month to one year basis. I think China's gone through the worst of it.

Look at China Mobile , adds Guy Adami. That’s a growth story that I think will continue into next year.

I did a little research, exclaims Jeff Macke. They’re communist. They can do whatever they want. I can’t imagine a compelling reason to get involved in that quagmire.

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On Aug 1, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Macke Owns (COST), (MSFT), (EMC), (WMT); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (RIG); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Is Short (XLF), (BBT), (COF), (IYR), (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (CSCO), (F), (INTC), (MER), (MSFT); Seygem Asset Management Is Short (FXI), (VIP)