Two Ways: Can China Save the Day?
Strengthen your portfolio in good times and bad.
China to the Rescue
China, the world's third-largest economy, will be a "stabilizing force" in the fight to halt the global financial crisis. So says People's Bank of China Governor Zhou Xiaochuan.
According to Bloomberg, Xiaochuan cited the cutting of interest rates 5 times since September and China's $585 billion stimulus package, both of which have given confidence to investors. So far this year, the Shanghai Composite has risen 30%, making it one of the best performing indexes in the world.
See Minyan Jame's Quinn's Can China Beat the Fed At Its Own Game?
From the Bull Pen: Many know about the iShares China 25 ETF (FXI), but bulls can look to the better play Professor Krueger mentioned on the Buzz: The Morgan Stanley China A Share Fund (CAF). A sell stop can be set below $27.
From the Bear Cave: Bears can keep an eye on New Oriental Edu & Tech (EDU). Filling the gap and failing isn't the best of signs. Aggressive bears can play the downside with a buy stop 2% above entry.
Quick Check Around the World
Asian trading closed with the Hang Seng 3.57%, India 3.47%, Nikkei 1.84%, Taiwan 0.75% and Shanghai 3.06%.
Glancing towards Europe, we see the CAC -0.13%, DAX 0.71%, FTSE -0.29%
As of 8:05 AM EST, S&P Futures are trading +12 to 820, and Nasdaq futures are +12 to 1252.
A Look At Commodities
Crude oil is trading +0.87 to 53.64. Gold is -0.30 to 935.50. Silver is +0.93 to 13.530, and copper +4.35 to 184.65.
The dollar index is -0.220 to 84.0750.
On the Radar
08:30 Initial Jobless Claims 640k
08:30 Continuing Claims
08:30 GDP QoQ -6.6%
08:30 GDP Price Index 0.5%
08:30 Core PCE QoQ 0.8%
08:30 Personal Consumption
Click here for the full trading radar.
Thirsty Thursday! Join me at Giorgio's later tonight. Good luck!
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