Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyanville's Before The Bell: China Steamin' Ahead; U.S. Slowing Down

By

China's economy grew 11.5% yet Shanghai fell. U.S. economy is expected to slow. Futures inch up.

PrintPRINT
Morning Perspective:China Steaming Ahead

Bloomberg reports China's economy grew 11.5% in the third quarter matching consensus estimates. GDP figures for the previous quarter came in at 11.9% marking the fastest pace in 12 years. Just recently, the National Development Reform Commission (NDRC) said the government should revalue the yuan by as much as 20%. Read Professor Cooper's Like A Bull In A China Market and Professor Warner's Doin' It Bloggystyle: Tick, Tick, Boom Goes China

The Bull Pen: The Powershares dollar bearish ETF (UDN) may be an option for Chinese bulls. Near-term traders may set sell-stops below the 10-day moving average ( 27.44) or the 50-day (26.93).

The Bear Cave: The iShares China 25 index (FXI) is extended, up 85% from the August low. Traders looking to play the downside could reasonably set stops above 220, which would be a new high.


U.S. Slowing Down

The WSJ reports many investors will be watching the release of the McGraw-Hill Construction report that will forecast spending on commercial and manufacturing buildings. Such expenditures are expected to decline by 7% in dollar volume next year and 10% in the number of square feet of space built, signaling a sharp turnaround from an increase of 11% this year. Read Professor Prieur du Plessis' article Does The Big "R" Lie Ahead?

The Bull Pen: Investors believing the economy may be slowing may look to the iShares 1-3 Year Treasury ETF (SHY) or, for added inflation protection, the iShares Lehman TIPS bond ETF (TIP). For the SHY, near-term sell stops could be placed at $81, which corresponds with the high on October 3 rd and the 50-day moving average. For TIP, sell-stops could reasonably be placed below recent support at $102.38.

The Bear Cave: The UltraShort Basic Materials (SMN) may be an option for traders playing the downside. Stops may be placed below the all-time low at 41.71.

Click on Minyanville's Stocks To Watch for more company-specific ideas.


A Quick Check Around the World

Asian markets were mixed. The Hang Seng gained +1.78%, the Nikkei fell -0.45%, the Sensex added +1.39%, Taiwan add +1.33%, and the Shanghai fell -4.8%.

European markets are trading higher. The CAC is up +1.47%, the DAX is up +1.38%, and the FTSE is up +1.40%. As of 8:30 AM EST, S&P futures are up 0.90 points and Nasdaq futures are up 12.0 points.


A Look At Commodities

Commodities are stronger this morning. Crude is up +1.41 at 88.51. Metals are higher as well with gold up +5.1 to 770.7, copper up +0.03 to 3.48, and silver up +0.18 to 13.77. The dollar index (DXY) is down -0.22 to 77.32.


On the Radar

Durable orders and Initial Claims is due out at 8:30 AM EST. Consensus estimates call for an increase of 1.5% in Durable orders. At 10:00 AM EST, New Home Sales data will be released with figures expected to come in at 785k.

Click here for Minyanville's full Trading Radar.

Check out Hoofy & Boo's new video when you get a chance. Good luck and have an excellent day!
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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE