Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20
AMD is KILLING Intel as Ryzen Zen 3 Takes Gaming Crown, AMD Set to Achieve CPU Market Dominance - 13th Oct 20
Amazon Prime Day Real or Fake Sales to Get Rid of Dead Stock? - 13th Oct 20
Stock Market Short-term Top Expected - 13th Oct 20
Fun Stuff to Do with a Budgie or Parakeet, a Child's Best Pet Bird Friend - 13th Oct 20
Who Will Win the Race to Open a Casino in Japan? - 13th Oct 20
Fear Grips Stock Market Short-Sellers -- What to Make of It - 12th Oct 20
For Some Remote Workers, It Pays to Stay Home… If Home Stays Local - 12th Oct 20
A Big Move In Silver: Watch The Currency Markets - 12th Oct 20
Precious Metals and Commodities Comprehensive - 11th Oct 20
The Election Does Not Matter, Stick With Stock Winners Like Clean Energy - 11th Oct 20
Gold Stocks Are Cheap, But Not for Long - 11th Oct 20
Gold Miners Ready to Fall Further - 10th Oct 29
What Happens When the Stumble-Through Economy Stalls - 10th Oct 29
This Is What The Stock Market Is Saying About Trump’s Re-Election - 10th Oct 29
Here Is Everything You Must Know About Insolvency - 10th Oct 29
Sheffield Coronavirus Warning - UK Heading for Higher Covid-19 Infections than April Peak! - 10th Oct 29
Q2 Was Disastrous. But What’s Next for the US Economy – and Gold? - 9th Oct 20
Q4 Market Forecast: How to Invest in a World Awash in Debt - 9th Oct 20
A complete paradigm shift will make gold the generational trade - 9th Oct 20
Why You Should Look for Stocks Climbing Out of a “Big Base” - 9th Oct 20
UK Coronavirus Pandemic Wave 2 - Daily Covid-19 Positive Test Cases Forecast - 9th Oct 20
Ryzen ZEN 3: The Final Nail in Intel's Coffin! Cinebench Scores 5300x, 5600x, 5800x, 5900x 5950x - 9th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Mario's Market Takes: The New Reality Random Nightmare

Stock-Markets / Financial Markets 2010 Apr 08, 2010 - 06:06 AM GMT

By: Mario_Cavolo

Stock-Markets Best Financial Markets Analysis ArticleI have kept quiet for well over a week watching the threat of explosive upside frenzy boil and boil, listening to practically every very respected primary advisor I am in touch with suggest this explosive upside rally is very much possibly imminent..oh I love the wording. From 60 year cycles to "this is the inflationary response" which even I have said, to sneaky slow bull markets, the markets are only going up driven by obvious sovereign level strategy that the stock markets will indeed be the root of the recovery.


As of today, gold, oil, silver, commodities (ags have lagged) are now setup for an explosive cycle rally up, even the FXI blasted up past strong res at 42...oh, I'm feeling feverish as I write this, my blood is boiling. I can feel the rush, the greed, the fear of missing the move, the magic of watching my longs go up and up and up....oh yes, the government and banks working together to manipulate the markets up and up and up, how I love them, ahh, why was I worried? The world is finally a safe place again.

...Oh the happiness and goodness in the world's economies that will come with $90 oil makes me giddy...

...Oh the continued staggering unemployment numbers create a relaxed lifestyle for many, the very best of positive thinking philosophy.

The More Realistic Side of the Story

Veteran investment guy John Thomas recently interviewed veteran Charles Nenner over at Madhedgefundtrader.com. Nenner had spent 12 years with GS and states that his cycle work has never been wrong; he says all of the above items mentioned (stocks, gold, oil) have peaked currently and after a few more months, bond yields rising to heaven and all else going to hell. There are a few other advisors out there also in agreement that we're at best going sideways from here and may even have some nasty corrections and swings back down...that's right, no oh my gosh explosive rally is imminent. Now I have a headache.

...I would tend to side with Nenner and that's exactly why I'm looking at this broad cacophonous choir of "we could now have an explosive inflationary rally" and thinking to go meet Walden in the woods for awhile with my Yamaha electric piano to work on Oscar Peterson's techniques.

So then here is the secret for shorter term and swing traders - it doesn't matter if you're wrong or right, to be wrong 50% of the time is true mastery if you get out quick when it is wrong and let it ride moving up your stops when the trade is right.

For long term investors, you're money is safe in cash and that cash should be almost anything but the Euro and Yen. USD is the cash of choice today. Australian or Canadian dollars would be good choices too because they back healthy economies but if the USD starts climbing when bond yields start rising even more, you'll lose value there. If you can arrange it, you should have your cash in Chinese RMB. If you can get $80,000 or more into China, you should immediately go to any of China's secondary cities such as Suzhou and Shenyang where you can still buy new apartments for 6000-9000rnb per square meter. Those will never be bad investments and could for example, be fabulous. In Shenyang, you can buy for 6-8000rmb per square meter within half a kilometer of the Olympic Stadium area, next to a Walmart and 12 months later, the new subway line is opening with a station within five minutes walk. How that could be a bad idea is a pretty limited conversation. Oh, keep another thing in mind, apt property carrying costs in China are very low; monthly management fee like $40 not $140 and no annual property taxes...add it up.

U.S. Stocks - Gold - Oil

Markets-wise, the only thing we can figure is the obvious; cheap money pumping the financial system, both in China and the U.S., with nowhere else to go, and for the moment it looks as though a potential steamroller is imminent in gold/oil/silver, with the street choosing to ignore the calamities just around the corner in rising bond yields and other debt/tightening and all the implications that goes with those little tidbits. In previous post, we've already made our case for the ridiculous and outrageous contrived rise in the price of crude oil, almost guaranteed to start causing economic pain soon; but the greedy rich bastards simply don't care about the bigger picture more than their own problems, oh that's human nature for all of us, let's not be "too" judgmental? Besides nasty unemployment and sovereign debt problems, another major U.S. mortgage related crisis is coming our way as enter the summer season.

Cheers,

By Mario Cavolo

www.mariocavolo.com

Mario's Market Takes and other insightful articles on business, culture and markets in China are free to all readers. To join our subscribers who receive more specific investment and trading commentary including in-depth insights and trade positions in the China markets and their impact on the globe, please visit www.marketandchinaadvisory.com

The Market and China Advisory Monthly Newsletter is available at $109 per year PLUS you receive a FREE copy of The New Reality, Mario's new 111 page e-book on business, world culture and China.

Biography: Mario Cavolo is the founder and editor Market and China Advisory Monthly Newsletter. He has been based in China for over 10 years, a professional speaker, writer and media event personality providing multinational and media industry clients with training, coaching, communication, market research and advisory services. Take advantage of Mario’s “on the ground” China insights by visiting www.mariocavolo.com and www.marketandchinaadvisory.com, where you will find insightful articles and commentary on business challenges, communication, and global market advisory with a special focus on China business and culture.

© 2010 Copyright Mario Cavolo - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules