There are 2 big problems with blaming China for the stock market sell-off

Stocks fell
more than 3% in the US on Monday, a decline that followed a
3% sell-off to end last week.

But on Tuesday morning,
stocks were ripping higher, a move being largely attributed
to the People's Bank of China's decision to cut rates.

And so while the
consensus is sort of coalescing around the idea that the
latest moves in the stock market — both up and down —
have to do with China, Deutsche Bank's Torsten Sløk circulated an
email on Tuesday morning questioning the logic behind this
reason.

"I have two problems with the ongoing global stock market
sell-off," Sløk wrote.

Sløk added:

1) Betting against China has been a losing proposition
for decades, why should now be different?

2) Despite this being a client conversation for several
months, I still haven't seen a smoking gun chart showing why a
slowdown in China will have a significant impact on the US
expansion. If you have one then please send it along.

Sløk included the following chart, showing spikes in the
VVIX — which measures volatility of the VIX index, which measures
expected volatility in the stock market — during the Lehman event
of 2008 and the Greece crisis of 2011, among other big
events.

Is this really the same sort of problem?

Not to Sløk, who writes: "As a result, I conclude the
following: When uncertainty about corporate America
reaches an all-time high – see chart below – because of
"something in China" then it looks like a buying opportunity to
me; wait for your 5-day moving average to stabilize and
it will likely be a good entry point."