Today, the Chinese gov’t boosted bank reserve requirements, again—in an effort to curb inflation. Unfortunately, for them, it will likely lead to a precipitous “fuck you too,” as the U.S. slowly drifts into recession. They have to delicately balance runway domestic inflation, at a time when their biggest consumer (U.S.) is eating pavement.
By the way, inflation is at an 11 year high in China.
Keep in mind, there is no such thing as soft landings.
Aside from that, the communist oracle’s in Beijing have decided to implement good ol’ fashioned price controls on meat, eggs and cooking oil. As a result, bank and food related stocks are getting punched in the cock, in early Shanghai trading.
And, to top off the shit pie, their currency (renminbi) just hit a fresh high versus the dollar.
I may regret selling some of my [[FXP]] today.
At the time of the post, the Shanghai composite was down nearly 3%.
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FXI is going all the way back down to $100 which means FXP would go to $160.
FLY, what are your thoughts on a possible short lived rally? it seems due when you look at the charts but other than an emergency rate cut, i just don’t see anything that could pull this market up.
Shit on a stick.
I may have to repurchase those Feb 95’s tomorrow.
Or just buy more FXP.
Damnnnn
Not to be a contrarian, but as I take a look at the US futures, we have the naz up 9.50 pts, S&P up 7.75 pts, and the Russell up 4 pts. I am used to seeing FXP go up when the US market tanks. Will we see it go up together with the US markets going up?
Fry,
I am flucked.
Off to serr lest of my stahks in sorah companies an buy gord statues of Buddha.
Here comes the bounce. DOW futures up 70.
This is Juju bear speaking:
I must say that I enjoy reading all the posts and commentaries here. There are some very smart people on this blog and I am humbled by their willingness to share their knowledge and experience. I believe this comes from a sincere desire to help one’s fellow man. There’s a lot that can be gleaned from this group, and it is powerful.
The Fly has attracted a collection of intelligent traders with lots of insight. The humor and entertainment is second to none. Some of you here should be comedy writers (maybe you are already).
The discussions, aside from the character assassinations and “gay banter” are very informative.
I commend you all, both great and small for your contributions.
Now…enough of that touchy-feely shit. Tomorrow, I’m going to disembowel more bulls and hang their horns on the solid gold mantle above my fireplace. Goodnight.
Fly, the news you’re posting is over 1 day old. That’s why FXP jump*ed* again.
FXP is indexed to the H shares on the Hong Kong market. Hong Kong is rebounding today as I type, so FXP is going down tomorrow.
If you want to follow the current econ news out of China, check out the China Daily website (it’s in English) at http://www.chinadaily.com.cn.
For those who can read Chinese, check out http://www.jrj.com (yes, JRJC is the stock symbol for this website…)
FXP will be volatile until March, when the Commies in China meet to reset econ policy. I believe Chinese stocks will move back up after March, and FXP will be in trouble then… That just means we have 2 more months of good profits on FXP.
Good luck!
I am white fat fuck who likes to poke fun at yellow folk yall. Please chomp on my tiny balls.
FXP will print 88 soon enough.
…..rats, rats and more rats…….Tobin Smith is now “officially bearish”, shitting the shower with gusto, and he has a large following, mainly because he smiles good…….I guess The Fly finally convinced him……this means that FXP and TWM entries and exits may get more complicated…..
Can’t beat yourself up taking money to the bank on that FXP sale.
I think we come off the lows today & may not revisit them till March.
Fly,
How much longer will these write downs go on? How much more in pipeline anothe 100 bil, 200 bil? Man these are supposed to be smart top notch school grads, what the fuck. Will the market bottom soon or is dow going down to 100.
Much kudos for seeing this and having the guts to act on in. You deserve full credit. Keep those thoughts coming from that calculator brain of yours. By the way are you dennis gartman?
thanks.
No, I’m Dennis Gartman.
The Fly despises charts, and as you know The Gartman loves charts.
Plus, Gartman is in Richmond, Va.
Coincidence?
Odd, no?
When I last went through Richmond on the way to Charlottesville I saw somebody who looked like Gartman climbing the Marlboro cigarette off I-95 screaming something about Woodshedder and charts.
My wife made a random comment last night: “Gosh, the price of toilet paper has doubled. Isn’t that strange?”
A nice read: http://www.jasmts.com/files/newsletters/promo/jasmts2008Jan16.pdf
I didn’t realize Lurch from the Addams Family is running MER.
chuck B I see you were on the MER call
I just want to say that this “White Supremacist” thing is very offensive to me and my demographic…er, I mean “people” — especially so close to Martin’s Day.
I demand he be taken out back and lynched from a lampost.
After his income and savings have been taxed at a 96.2% rate, of course.
Boom — true story. Sometimes I “get a coupla things” for the wife down at the Kroger.
One of those things is the big ass bags of dog food that she does not enjoy lifting. We have a voracious hound with a very high metabolism.
Anyway to my point — the first time I noticed “inflation” was in the big ass bags of dog food. You used to be able to get them on some sort of store discount at about $22. Now you can’t find them (even with the store discount) for less than $28.
This is Purina One, for reference.
TC — dat show I ruvved when it pray on Dagoba in seventies.
“Lang you did?”
HarHarharharharhar!
That was actually me that day. It was “Week Three” of my second “Smoke Enders” tour, and I was having a bad day.
Ah, sweet nicotine! The flower of life!
A touch of the Line of Fibonacci at $74.75 for EWZ is not a gift from me, my children…
It’s a gift from Zeus, himself!