Two Ways: Specter of More Stimulus Sends Shanghai Surging
Strengthen your portfolio in good times and bad.
China To Announce Additional Aid?
Chinese Premier Wen Jiabao may announce the addition of more funds to the country's 4 trillion yuan ($585 billion) stimulus plan. The news caused a squeeze in the market, and sent the Shanghai Composite up 6%. According to the Telegraph, rumors of another round of stimulus have been swirling for months. China's communist political party, Politburo, pledged a "massive" increase in government spending last month, and analysts at Standard Chartered have long predicted the country would double the size of aid given its economy's rapid deterioration.
For more on China, see Professor Ryan Krueger's The Yi Yue Effect: Looking to DJIA and China.
From the Bull Pen: We'll get more details of the housing plan here in the US today, which is currently propping up stock futures. Bulls can consider the Ultra S&P 500 (SSO) for a short- term trade, but keep an eye on Big Beta for any signs of a reversal.
From the Bear Cave: The time for honoring the dollar will soon come to an end. The dollar index could be showing signs of near-term exhaustion and bears can consider the Bearish Dollar ETF (UDN).
Quick Check Around the World
Asian trading closed with the Hang Seng 2.47%, Nikkei 0.85%, India 0.23%, Taiwan 2.39% and Shanghai 6.12%.
Glancing towards Europe, we see the CAC 1.73%, DAX 2.24%, FTSE 1.39%
As of 8:10 AM EST, S&P Futures are trading +9 to 699, and Nasdaq futures are +12 to 1084.
A Look At Commodities
Crude oil is trading +1.42 to 43.07. Gold is +0.90 to 914.50. Silver is +0.16 to 12.870, and copper +1.65 to 161.25.
The dollar index is +0.2200 to 89.2400.
On the Radar
07:00 MBA Mortgage Applications
07:30 Challenger Job Cuts YoY 4.80 m
08:15 ADP Employment Change 1.3%
10:00 ISM Non-Manufacturing Composite 1.3%
02:00 Fed's Beige Book
Click here for the full trading radar.
It's hump day. Good luck!
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