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Two Ways To Play: Uptick in China's CPI


Strengthen your portfolio in good times and bad.

Uptick in China's CPI

China's consumer price index rose 0.6% year-over-year in November, according to the country's National Bureau of Statistics.

As reported by Xinhua News, it's the first monthly growth since January, before the CPI dropped 1.6% in February.

On the wholesale level, however, the producer price index fell 2.1% in November from a year earlier. Still, consumer prices fell 0.9% in the first 11 months, compared with a 6.3% increase in the same period last year.

As this news may have implications on commodities, take a look at Professor David Weigman's article, Crude Oil May Be in for a Strong Rebound and Rally.

From the Bull Pen: I mentioned on the Buzz and Banter yesterday that some of the oil service plays seemed like good risk/reward opportunities. You don't have to wager a lot of money to find out if you're wrong. Take a look at the daily chart of Schlumberger (SLB); a sell stop can be set below $59.

From the Bear Cave: Along the same lines of positive risk/reward, consider the downtrend that began last September in the homebuilders ETF (XHB). One can fade (read: sell) strength into $14.60 to $14.80 resistance, and set a buy stop above those levels.

A Quick Check Around the World

Asian trading closed with the Nikkei 2.48%, India -0.41%, Hang Seng 0.93%, Shanghai -0.21%, and Taiwan 1.53%.

Across the pond, we see the FTSE 0.86%, CAC 1.65%, DAX 1.07%

As of 8:30 AM EST, S&P Futures are trading +7.25 to 1104.25. Nasdaq futures are +8.500 to 1806.750

A Look at Commodities

Over in commodities, crude oil is +0.42 to 70.96 while gold is +13.70 to 1139.40 this morning. Silver is +0.407 to 17.58 and copper +0.045 to 312.50.

The dollar Index is +0.0050 to 76.4150.

On the Radar


November Retail Sales +1.3% vs +0.6% consensus, prior revised to +1.14% from +1.4%
November Retail Sales ex-auto +1.2% vs +0.4% consensus, prior revised to 0.0% from +0.2%
November Import Price M/M +1.7% vs +1.2% consensus; Y/Y +3.7% vs +2.9% consensus

09:55 Michigan Sentiment 68.5 cons.
10:00 Business Inventories -0.2 cons.

Happy Friday, Minyans. Good luck and have a great weekend!
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No positions in stocks mentioned.

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