The chinese “shadow banking system” is doing very poorly these days, according to the people who follow copper–pertaining to how it is used as collateral to leverage balance sheets to the maximum. Naturally, the communist state of “red China” will not bail out government controlled entities or help keep the shadow banking game going, despite planning to grow the economy at an exact 7.5% for the next 20 years.
You will have to pardon my cynicism on this joyous morning, ahead of what seems to be yet another buyable dip opportunity. Assuming the trend is lower, in the interim, we will have to wait for lower prices before committing new capital to the markets. I sold out of a few stocks yesterday, in order to free up buying power. I don’t have any cash on hand, per se, only buying power, utilizing the powers of leverage, also known as margin for you home gamers.
The first hour of trading should be ignored. Come back later and see if the market is cheap enough to buy. Having access to The PPT oversold signal will help on days like today.
Happy trading.
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Awesome call Mr. Fly. I took your advice and “had a sandwich”. Came back, poof, almost back to black.