Over the weekend we reported that in the aftermath of China’s crackdown on capital controls, “Chinese buyers have left the U.S. housing market.” But if potential Chinese buyers are unable to transfer funds out of the mainland, it wouldn’t be just the U.S. and Australia where the housing bubble is now rapidly bursting, it would be everywhere else…
His was a deceptively simple question. “What exactly is the purpose of a Chinese SOE?” I had just finished speaking to the Asian management committee of Air Liquide, one of the larger and more successful Fortune 500 companies operating in China. Air Liquide has for years done profitable business with large SOEs in China. That business…
EU Session Bullet Report – After ECB Fireworks, NFP next When we prepared the Bullet Report yesterday at the same time, we mentioned that if ECB President Disappoints during the press conference, that a gradual recovery towards 1.0880 cannot be excluded. Little did we know that the recovery wouldn’t be gradual and would not stop…
“There are many ways of calculating purchasing power by means of index numbers, and every single one of them is right, from certain tenable points of view; but every single one of them is also wrong, from just as many equally tenable points of view. Since each method of calculation will yield results that are…
The USD/JPY pair fell significantly during the course of the day on Thursday, testing the 122 handle. The 122 handle is of course a large, round, psychologically significant number, and an area that we’ve seen buyers step into this market and push the US dollar higher. I think that it’s only a matter of time…
Euro 50 flips Draghi the Bird, S&P 500 fails at a key parameter, Semi’s are fundamentally bearish and Gold has a sentiment washout within its bear market. Despite Janet Yellen’s protests to the contrary, the 7 year long asset market bailout (ZIRP + QE’s 1, 2 & 3 with a side of Operation Twist) has served…
Anyone that tries to tell you that a global financial crisis is not happening is not being honest with you. Right now, there are 27 major global stock markets that have declined by double digit percentages from their peaks earlier this year. And this is truly a global phenomenon – we have seen stock market…
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on…
Yesterday’s Trading: The euro/dollar rose by 450 points on the American session to 1.0980. The active closure of short positions on the euro was sparked by the ECB decision and what Draghi had to say. Market participants expected more aggressive measures to be taken with regards to relaxing monetary policy. Volatility on the market rose…
