Trader’s Narrative

The Chinese government is actually taking measures to try and control this crazy market of theirs:

Widen the trading band of the yuan against the dollar to 0.5%
Up lending rate to 6.57% & deposit rate 3.06% (now just above inflation)
Raise reserve requirements by half a percentage point by June 5th 2007
Allow up to 50% of bank […]

The yield curve is a sign of liquidity and as such, has provided good signposts for the long term prospects of the stock market. So lets take a look at what the yield curve looked like at the top and bottom of the markets. And what it says now.

The first chart shows the yield curve. […]

While the Chinese stock market is white hot, non-Chinese are not allowed to participate. The only thing we can do is the next best thing: proxies in the form of ADRs or neighboring Asian markets like Hong Kong and Singapore.

Meanwhile, Li Ka-shing, Asia’s richest man said that the Chinese stock market “must be a bubble” […]

After Richard Russell’s recent bullish pronouncement that “an unprecedented world boom lies ahead” many - especially the permabears - have interpreted this as the last great bear throwing in the towel.
They go on to claim that this capitulation by the formerly bearish Dow Theory guru means that we are at the top and about to […]

In a previous post I introduced the Great New Pattern. At that time, I used Accredited Home Lenders (LEND) as an example. I thought I would present a new stock that has shown not one but two instances of panic selling. And why one is the GNP and the other is not.
By the way, a […]