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Two Ways To Play: Big Cuts in Big China

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Strengthen your portfolio in good times and bad.

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China's Central Bank Cuts Rates - Again

Chinese officials are taking drastic steps to halt further slippage in its economy. According to Bloomberg, the country's central bank, the People's Bank of China, said the 1-year lending rate will fall by 108 basis points to 5.58%.

This marks the largest cut in 11 years and comes just 3 weeks after the Chinese government announced plans for a stimulus plan worth $586 billion.

See China, Starbucks Share Same Problems by Professor Vitaliy Katsenelson.

From the Bull Pen
: The slowing global economy isn't a novel theme. The tape remains skewed to the upside. Bulls looking for a trade can consider Baidu (BIDU). One option is to start an initial position here with a sell stop below $100.

From the Bear Cave: Bears wishing to play the downside can consider the iShares FTSE/Xinhua China 25 Index (FXI) at a later date. One option is to enter a starter position if the stock can rally to $30 overhead resistance.


Quick Check Around the World

Asian trading closed with the Hang Seng 3.81%, Nikkei -1.33%, Sensex 3.81%, Taiwan 0.12% and Shanghai 0.49%.

Across the pond, we see the CAC -3.03%, DAX -2.38%, FTSE -2.42%

As of 8:10 a.m. EST, S&P futures are trading -15 to 838, and Nasdaq futures are -3 to 1133.


A Look At Commodities

Crude oil is trading +0.67 to 51.43. Gold is -5.0 to 813.50. Silver is -0.400 to 10.230 and copper is +4.750 to 170.05.

The dollar index is +0.561 to 85.561.


On the Radar

Economics

07:00 MBA Mortgage Applications
08:30 Durable Goods Orders
08:30 Durables Ex Transportation
08:30 Personal Income
08:30 Personal Spending
08:30 PCE Core YoY
08:30 PCE Core MoM
08:30 PCE Deflator YoY
08:30 Initial Jobless Claims
08:30 Continuing Claims
09:45 Chicago Purchasing Manager
10:00 U. of Michigan Confidence
10:00 New Home Sales
10:00 New Home Sales MoM

Click here for the full trading radar.

Good luck today and have a great Thanksgiving tomorrow!

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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