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Two Ways To Play: Big Cuts in Big China


Strengthen your portfolio in good times and bad.


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


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.

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