Friday, 10 July 2015

China has probably floored

The Thursday trading session saw Chinese equities experience further swings, breaking a new cycle low of 3373, but then rallying strongly into the close, settling +5.8% @ 3709. A wave higher is due into August, with a primary target zone of 4300/500.

China, daily


Little to add, but it does seem many of the other world markets are increasingly looking to China as a means to pick a direction.

My original downside target from 5K were the 3400s... with that being hit.. a natural bounce seems due into next month. If correct, that will certainly help 'inspire' many other markets.

As for the US market...


With one day left of a rather volatile week, we're currently net lower by -1.2%. Considering there won't likely be any provisional Greek deal until the weekend at least... the equity bears are set for their third consecutive net weekly decline, the weakest trading period since early January.

Looking ahead

Friday will see wholesale trade data.

*there are two fed officials on the loose. Notably, Fed chair Yellen is set to speak, and Mr Market will surely be listening. I would imagine a press release of the speech will be issued at 12pm, and the algo-bots will likely have some reaction to that.

Meanwhile... from another bunker...

... indeed, bring me the head of the false prophet... Jim Cramer.

Goodnight from London