Updated from 6:59 a.m. EDT

Have you noticed what's going on in the Chinese stock market lately? Let me bring you up to speed in case you've missed it. The stock markets in the Far East have been crashing in a manner that makes the infamous Black Monday on Wall Street look like a walk in the park. The Shanghai Composite Index is down more than 50% from its peak of 6,092.06 points in October, and Hong Kong's Hang Seng Index has fallen more than 20%.

These large drops in the Chinese stock markets are eerily reminiscent of the

Nasdaq

crash of 2000. Valuations in China spun out of control as investors bid up everything in anticipation of the Beijing Olympic Games, causing an unsustainable bubble. Unfortunately, the bulls on China were a bit overly optimistic, and the bears faded the "Olympic Trade" and sold with force.

To read more, please click here.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of

Stockpickr

LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the

TheStreet Recommends

Financial Times

and the author of

Trade Like a Hedge Fund

,

Trade Like Warren Buffett

and

SuperCa$h

. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

click here

to send him an email.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.