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Two Ways: China's GDP Picks Up the Pace


Strengthen your portfolio in good times and bad.

China Rebounds from 1Q

China reported a 7.9% increase in GDP in 2Q from a year earlier; this after growing at the slowest pace in almost 10 years in the previous quarter. According to Bloomberg, the world's third largest economy is benefiting from the government's 4 trillion yuan ($585 billion) stimulus plan enacted earlier this year. Consensus forecasts call for the economy to continue to expand by 8.1% this year. Noteworthy is that it's the only one out of the 10 largest economies that's expanding.

See Professor James Anderson's China, US Look Like Another Bubble in the Making.

From the Bull Pen: For Chinese exposure, bulls can look to China Mobile (CHL). A sell stop can be set in the $45-46 range in the near term. The iShares China 25 ETF (FXI) could also be gathering momentum before breaking above $40 resistance. It's worth keeping on the radar.

From the Bear Cave: Sure, China has its own issues brewing. But it's the stampede for now, so it may be best not to get in the way. But keep an eye on Baidu (BIDU) headed toward $380 resistance and note how fast it gets there. Parabolic moves could lead to parabolic declines. If and when.

Quick Check Around the World

Asian trading closed with the Hang Seng 2.42%, India 3.47%, Shanghai 0.19%, Nikkei 0.55%, and Taiwan 1.04%.

Glancing towards Europe, we see the FTSE 0.84%, CAC 0.88%, DAX 0.79%

As of 8:15 AM EST, S&P Futures are trading +0.300 to 927.50 and Nasdaq futures are -2.000 to 1495.25.

A Look at Commodities

Over in commodities, crude oil is trading -0.42 to 61.60 while gold is -1.10 at 934.30 this morning. Silver is -0.850 to 13.15 and copper +0.10 to 238.10.

The dollar index is +0.3300 to 79.7000.

On the Radar


08:30 Building Permits 523k
08:30 Housing Starts 530k

Happy Friday! Good luck!
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