Saturday, December 20, 2014

Weekly update 20 Dec China and America

Hey Folk

Here we go again

China the awaken dragon

Govt in China is cleaning up their own backyard in term of vices, corruption etc. They too are making their finance sector more robust at the same time open up their currency. These will only attract the already popular place for business. More people will want to go into this place.

At the same time alot of dealings with countries already by-pass using USD as the medium of exchange. In fact they deal in their own country's currency.

China had also become the world number 1 economy. Not just that but the biggest importer, which mean they are buying. 

All these will fuel the stock market of China that have been poor from 2008 till present. The stock market have awaken and is into the bull. Now it is a young bull ( a promising calf )

Under President Xi leadership, i think he would architect and create, reform, refurbish the country.

America still the big bro

Still the leader of the world and the big bro. Of course as a big bro, there are alot of things that you cannot dont care. If there is fighting here or there, there are some siblings who are sick or etc the big bro have to be there. These inevitable will make more friends or make more enemies. With these in mind, they are also trying to measure and balance the relationship with China.

When you are still a big bro and had performed as a bog bro, you give people the assurance. So in this juncture when there is any turbulence, investor still prefer the US.

US stock market will go higher and USD will go higher as well.
This will lead to currency war. (Elaborate on other posting in future)

Review from last week trades:

Took some profit on China A50 and holding on to some

Took Full profit on Usdpy
Long S&P500

current open position

China A50
S&P500

This coming week

Gold - The overall trend is downLet see more closely the movement of this metal. It might change from downtrend to uptrend. My take is it will stage a rebound then come off and creating new lows again. But i am always wrong so take it with a pinch of salt.

Oil - Trend is down. The look of it is that the down move will continue. It is good for the economy in the long run for low oil price. 

Stock -  Buy on dips. No sign that the stock market is coming off yet.US stock market may be capped. I do not see alot of room of movement till next year. But any price about 18000 in the Dow will let the market move higher.
China Stock market is a buy too. It have relive. Any dips is a buy. Moreover, the bull is young in this one. The chinese govt have introduce a little stimulus into their economy in around July. All stimulus like we know will boost the stock market

Currency - Most of the currency like Eur. Gbp, Nzd, Aud, Yen are in a downtrend. i will be still be looking for the down side in all of them. 

cheers folk