The Chinese stock market as measured by the Xinhua China 25 Index (FXI) has declined 18.3% in the last 3 months. The Chinese government is doing everything it can to prop up the company’s faltering economy and stock market. The Chinese government recently drastically increased brokerage financing capabilities. Nothing screams ‘bubble’ more than investors buying on credit. Heavily…
Bob Farrell once penned: “When all the experts and forecasts agree – something else is going to happen.” This rule fits within Bob Farrell’s contrarian nature. This view was also confirmed by Sam Stovall, investment strategist for Standard & Poor’s, who said: “If everybody’s optimistic, who is left to buy? If everybody’s pessimistic, who’s left to…
Vancouver is my favorite city in North America. It’s my second favorite in the world, roughly tied with Capetown, South Africa. The top spot goes to Sydney, Australia. Then San Francisco and Austin round out my top 5. That said, I’m not the least bit surprised that Vancouver has become a prime example of the…
In 2004, Google (GOOG) (GOOGL) founders Larry Page and Sergey Brin wrote a letter to investors telling them what they’re getting themselves into. They wrote that Google was never intended to be a “conventional company” and that investors should expect the company to make “smaller bets in areas that might seem very speculative or even…
“You can’t print gold.” For some perspective on the long-term performance of the stock market, today’s chart presents the Dow priced in another global currency — gold. Today’s chart illustrates how it currently takes 15.7 ounces of gold to ‘buy the Dow’ (i.e. the Dow / gold ratio) — well off the 44.8 ounces it…
Shares of Alibaba fell as much as 6.93% in pre-market trading Wednesday after the company reported its fiscal first-quarter results. The e-commerce giant reported revenue of 20.24 billion yuan or $3.265 billion, which represents 28% YoY increase. However, its June quarter revenue missed the consensus estimate of $3.39 billion, sparking speculations that Alibaba is witnessing the impact of a…
The overnight market has been a repeat of yesterday’s action, when following China’s repeat 1.6% devaluation of the CNY (which was to be expected since the PBOC made it quite clear the fixing would be based off the market value, a value which continues plunging), the second biggest in history following Monday’s 1.9% plunge, traders…
The Financial Times headline story claims that “China risks clash with US as 19% devaluation surprises markets”. The text provides no support for the claim, except a quote from Senator Schumer who has tried and failed several times to toughen up US laws on currency manipulation. The FT notes that “The US Treasury offered a…
Switching from Long to Short The modified Ned Davis stock market timing model developed by Frank Roellinger has given a sell signal at the end of last week. Readers who aren’t familiar with this trading system should take a look at Frank’s article introducing it, which we published in late 2013: “The Modified Ned Davis Method” (MNDM)….
Video Length: 00:01:43 During the session on Wednesday, there are a couple of announcements that could move the markets. We have Industrial Production coming out of China, and of course employment numbers coming out of the UK. The crude oil markets will get a bit of volatility due to the Crude Oil Inventories number coming…
