Guess what? SSE (Shanghai composite) is up on terrible economic news. So, the irrational exuberance continues...
The market has been in a ABC correction since the year 2000 and we might be at the Wave-B peak. The C wave down will be vicious, nasty and unrelenting. My S&P target is 400 in the year 2016 (80%) decline from the current levels. (If my EW theory wave count pans to be correct)
The issue wit this theory is who do they dump the stocks to? In the past they successfully lured in the retail investor and that scam seem to have run it's course...
SPY for SPX
QQQ for NASDAQ100 (Not the whole NASDAQ) and the top 10 make up for 50% of the weight.
AAPL, GGOG, MSFT make up roughly 30% of the weight. So, know exactly what you're going Long or short.
Good news keeps on piling....
China’s auto sales reached 1.72 million vehicles in August, a rise of just 4.0 percent compared with the same month a year ago, an industry group said Thursday.
In July sales had climbed 6.7 percent year-on-year to 1.62 million vehicles, previous figures showed.
For the first eight months of the year, the country’s auto sales rose 7.7 percent to 15.02 million vehicles, the China Association of Automobile Manufacturers said in a statement.
China is critically important to foreign car manufacturers, which dominate the market, given massive demand from a growing middle class and weaker sales in other parts of the world such as Europe.
But the recent fining of several foreign auto firms for allegedly making use of a dominant market position to control prices, deemed to be in violation of China’s anti-monopoly law, has taken some of the shine off its appeal.
Authorities on Thursday fined an affiliate of German automaker Volkswagen more than US$40 million for price-fixing for cars and repair services in the central province of Hubei, according to a statement.
Separately, the government fined Chrysler of the United States — which has merged with Italy’s Fiat — over US$5 million for recommending prices to dealers in Shanghai, the official Xinhua news agency reported.
Still, foreign companies continue to record healthy sales.
US auto giant General Motors set a new record for August as its China sales surged 14.0 percent year-on-year to 280,178 vehicles, the company said.
Competitor Ford sold 77,506 vehicles, up 9.0 percent from the same month last year.
Full-year auto sales in China reached 21.98 million vehicles last year, when a recovery in Japanese brands offset the impact of slowing economic growth.
Doesn't bode well to X and any global growth related companies and their stock.
China's factory output grew at the weakest pace in nearly six years in August while growth in other key sectors also cooled, raising fears the world's second-largest economy may be at risk of a sharp slowdown unless Beijing takes fresh stimulus measures.
The output data, combined with weaker readings in retail sales, investment and imports, pointed to a further loss of momentum as the cooling housing market increasingly drags on other sectors from cement to steel and saps consumer confidence.
Industrial output rose 6.9 percent in August from a year earlier - the lowest since 2008 when the economy was buffeted by the global financial crisis - compared with expectations for 8.8 percent and slowing sharply from 9.0 percent in July.
"The August data may point to a hard landing. The extent of the growth slowdown in the third quarter won't be small," said Xu Gao, chief economist at Everbright Securities in Beijing.
Expect the 50 DMA to be broken and 100 DMA to be tested next week.
The short term downside target is around 17.3, but it might have a relief rally after that. But, it might not get there if it bounces on Monday
I'm down and I'll admit it. But, I've also hedged by doing PUT spreads... Also, I expect a big downside move in the broader markets in the next few weeks (This was a big engulfing reversal week) and once the momo players in X run for the exits this will fall faster. General rule of thumb 3X faster and nastier. A close below $38 on decent volume, this thing is going to 50 DMA (Now @ $33.5) in a hurry.
He also asked you to sell after the gap up. Now that it has run, he is saying $43. is is worth to risk $5-$10 to make $3? Unless you set a stop @ $38 or so.
Gold/Silver are yet to trace out Wave-5 of their decline... Once it starts the sell-off will be brutal. It is just one of the scenarios where Stocks, Bonds, Commodities and Precious metals will go down together (Sound familiar, Check the year - 1929) and $ will be king $ for some time to come.
Fight the trend?
Longs are the one fighting the trend... In case you did not notice, the stock has been in strong long term down trend since the 2008 collapse.
$40 is a huge level for this stock going back several years... You don't think it will just get past it on the first try, do you? The stock is being run up by momo players and it has already slowed down in the recent days.
The commodity bubble burst in 2008 and most of them will never see those valuations for years to come. Right now steel is WS darling, that will change soon and X will be taken to the woodshed once again!