Posts Tagged “China”

A Rally and a Reality Check (or Two)

2 | By Shah Gilani

“Rudolph with your nose so bright, won’t you guide my sleigh tonight…”

Thank goodness there’s a light out there somewhere, so we can see what’s coming.

And judging by last week’s market action, guess what?

Santa Claus is coming to town!

Ho, ho, ho, what a rally. The Dow Jones Industrials rose 787.64 points, a 7.01% jump, making it the venerable benchmark’s second-best weekly up-move ever! The S&P 500 rocketed up 7.39%. The Nasdaq Composite shot up 7.59%.

But the real winner was the broader market, encompassing the less muscular household names ensconced in the Russell 2000; it rose a whopping 10.34%.

Speaking of the 10% gainers club, guess who else got their tickets punched on this sleigh ride? Not surprisingly (considering a little thing called “short-covering”), Italy was up 10.4%, Spain was up 10.24%. France was up 10.78%, and Germany was up 10.7%.

The week before last, not one single stock market in the world advanced by even a hair. Last week, every single key stock market in the world rose – and very impressively.

Oh, wait a minute. There was one little country that actually fell almost 1%. Good thing they’re not on anybody’s radar and don’t matter much. Who was it, you ask?

China.

Ho ho… uh-oh!

Too Little, Too Late (and a Jab at the Oracle)

1 | By Shah Gilani

Dear Reader,

In yet another sign that markets are broken, yesterday’s huge market advance came on the heels of two presumably separate (yeah, right) central bank moves.

Both were designed to add liquidity and support to shaky and dangerously deteriorating markets.

(That was good news?)

First, China lowered the reserve ratio its banks have to hold against loans they make. They didn’t do that because things over there are rosy. They did it because the property market is teetering and financing has been drying up.

Full story here…

Why a Year-End Rally is More than Possible

0 | By Shah Gilani

Lately it seems everyone wants to know one thing: Are stocks going to rally through year-end?

The answer is an unqualified “maybe.”

To explain this uncertainty, let’s look at where the markets are today.

Last week, the Dow Industrials gained 1.4% to end the week at 11,808.79. The S&P 500 rose 1.1% to 1238.25. But the Nasdaq Composite fell 1% to 2637.46.

While it seems like stocks have come a long way in a short time – and they have – in the big picture, we’re still crawling and clawing our way up…

Here’s the full picture…