QE 2: some view of the big name investor

I got this website from a friend of mine. Very interesting.
http://www.theglobeandmail.com/globe-investor/markets/markets-blog/big-name-investors-pull-no-punches-on-qe2/article1775439/
This website bring us to a over all view of the economy.
This crisis we are going through here is the first ever. In human history, we have never meet this before. So there is no past record to base on. There is like no past year paper for us to know what will happen. The FED do not know what will happen, Obama do not know what will happen.

The new QE may work or may not work. The 1st QE essentially printing money to buy government bonds – was introduced during the worst days of the financial crisis, and largely credited with rescuing the global economy.
The QE2 is a cure-all for high unemployment, a depressed housing market and a U.S. stock market that is still well off its 2007 highs.

So are this all gimmick, ponzi etc...Well is for us to find out. Maybe the whole world economy is going to be worst off.Maybe is getting better.

Funds in general

From fund managers, they have some take on the funds:

1. Asia and Emerging markets is going to benefit due to the expected liquidity injection and rising commodity prices.

2. China and India will not be adversely affected, they are expected to continue to grow in their own way

3. Japan and Europe may struggle.

4. Trade war and protectionalism is the risk and fear but it’s not expected to happen.

I would like to ask my friends that are in the semiconductor area, what is rare earth?? What material is that? 90% of rare earth is in China. What more happening is that rare earth is the new material, that will be use in semiconductor. Which will lead to a new generation of technology. China has 90% of this material, so sure they are going to benefit. Moreover, the future of technology will come from them.

Mkt update for this week and coming

Hey Folk

Stock market for this week
Very exciting week. We have most of asia market down this week. STI, Hang Seng down. We have in the US, Dow, Nasdaq and s&P almost flat as of thur.

US dollar & crude
US dollar is bouncing up and down with the crude oil having the same behaviour too.

So how are they doing??
Right now we see something interesting about the Stock market and the US dollar. It De-sync or the right word to use it is it does not synchronizes. The stock market is moving along with the crude oil now.They are moving together. The crude probably is going to test 80 per barrel today.So if that happen, Dow will go down to about 11000 or below. Which will bring the asia market down when we open on monday.
One Sign tell us that, that is STI went up today. But notice that there are more loser than gainer. Also the banks stocks 2 down and 1 up. The property counter that are in the STI are also down.With minor gain in the commodities stocks.So this sign tell alot.

Probably the drop is coming.But again, i will be dead wrong like how i thought it will be in Oct.I still uses the same technical analysis to look at them. I am still staying sideline.

Next up on some funds report by various funds managers......

Major move will lead the way

I am waiting for some major move. Observe the chart and you notice some very interesting fact, small movement be get big movement, big movement be get small movement.
Gold is going south.Most stock indices are having small movement so far.Bonds too are trading in a range.

Will a drop come??

Hey folk
been pretty busy this few days. So where the market is heading into. Well initial study show me that the market is going up. Have no doubt about it, it is moving higher n higher. But i take a closer look at the market, commodities, Dollar index, Bond and Gold and i found out that is abit confuse where the market is heading. That why i been staying in the sideline for sometime.
However, if there is a drop, then it time for accumulation to start and if there is a breakout towards the upside, then buying in would also be a good idea. Dont ever think or guess or put your opinion into the market. You think the market is high. So you wish it will drop.But if the market will to move up another 10% higher.Today value is lower than the 10% upmove.Which mean to say now is the low and the high is the near future.

Apology

Hey folk
I got to apologise on the forecast that the market is going to drop in Oct.
Nothing is ever 100% in investing and trading.We are approaching to the end of Oct and not a week drop.There seems to be a broadbase buying everytime the market drop.
The 5 weeks advance this time round fail me as well as the 4 year cycle.
Further study is made and technical analysis shows both buy and short signal. There are signs that show the market is going to drop and signs show that the market is going up higher.

Let us see a few more days on the market development.If the market dont drop, then we shall follow the market and be a buyer. If the market eventually turn south then we shall be a seller. Let not fight against the market with our opinion or feeling that Ohhh the market is up so much, it time to drop.If a drop wont come it wont come. As it was like in 2006 thru 2007.

I would also email my beloved clients one stock for medium term investment. Probably 200% to 400% profit can be made. Medium term is about 3 to 5 years.

Nothing is ever 100%, so put your stops in.Dont get emotion into trading or investing as this will cause you to be very irrational and believe in your own way. I do not have any method that is 100% at all cause if i do then that will be the last trade of my life.

US dollar and S&P500 relationship

This is the UUP- dollar bullish index and the S&P500
So here is the Dollar that play the trick again.Dollar down Stock up. Inflationary rally, which cost commodities price to rally which mean goods price will be more expensive in the future.Notice something on the chart. The market is moving lesser as the dollar fall. It has a very strong support level for the dollar. So it may hit that support line and do a rally.