Wednesday, January 20, 2016

Bottom? Advertisements to join Bear raid clubs are now everywhere!

Usually it takes a while to start seeing Bear raid clubs advertise but this downturn has been so fast and furious that they are everywhere!

The boat is now top heavy.

It's just a matter of time before this crazy roller coaster starts going the other way. Remember the market does not take any prisoners. The top heavy Bear raid clubs will find out pretty quickly what it feels like to be a beach ball that is forced under water too deeply. It will shoot up well past the water level before settling back down to normal levels. But can the Bear raid clubs stay liquid during the eventual spike up?

What will cause a spike up?
  • Credit Suisse is betting oil prices will bottom out around $25 and plans to boost its holdings of energy shares when it does, according to chief investment officer Michael Strobaek.

  • Capital Economics China economist Julian Evans-Pritchard agreed that concerns about China's outlook are overdone: "With the tailwinds from recent policy stimulus still gathering, we expect the data to gradually turn more upbeat over the next few months... The recent market volatility has been driven more by sentiment than by economic fundamentals." - See more at: http://business.asiaone.com/news/pressure-grows-china-stimulus#sthash.hFQsxVVH.dpuf

  • Central banks still have more firepower they can use to counter a slowdown in global growth, which does not change the outlook for recovery in the euro zone, European Economics Commissioner Pierre Moscovici said on Wednesday.

Or it could just be the eventual rebound from an extremely oversold condition!

Wednesday, August 19, 2015

Currency Devaluation spreading in Asia - Vietnam follows China

Vietnam devalues dong currency, matching Beijing's yuan move.

Folks this is not good news, its more like desperation. Who is to say that others will not follow because they will lose their competitiveness if they don't.

Namely Korea, Malaysia, Indonesia, Japan, and or the Philippines.
But the worst part is that it could lead to a domino effect worldwide. That would completely wipe out billions in US Internationals profits.

One thing is for sure, the big internationals are going to be hard pressed to be able to meet profit estimates in Q3  and many of those stocks are already going down ahead of those results.