SPY May Not Find Buyer Next Week

[shortie]

as somebody pointed out in another thread no time line was given by the chinese. thus the impact on the markets may be very limited.

 

[sirgiyan]

If chinese currency would appreciate against dollar then:

1) the cost of chinese labor would increase in dollars
2) Profits of Apple and alike (think the whole consumer sector) would fall
3) Market would fall

Correct me please as I'm not that sure anyway....

 

[tradingjournals]

Quote from shortie:

as somebody pointed out in another thread no time line was given by the chinese. thus the impact on the markets may be very limited.

There is no guarantee that the chinese will do what they say, in the manner they say it. I will believe what the market will do, and not what the chinese say. What is significant is their statement because it is the first time they make it public. I would not be surprised that they already did what they need to do in markets (selling bonds in the rally, and buying euros in euro's weakness. There was some very unusual movement in currencies recently: Yen was stronger both against the dollar and euro. Usually it is the dollar that strengthens or weakens against both.

I am convinced that their stock market would tank Monday, and/or that the bonds in the US might dive. If not, then the chinese's words are just bluff/hot air.

 

[sirgiyan]

For educational purposes I would love to know why does everyone talking about bonds diving? What is the correlation with chinese decision (let's assume it's not bluff)

Thanks

 

[Petsamo]

Man, there's really a lot of expertise in this forum. Some say markets would tank, others say markets would rally ...

 

[Petsamo]

Futures are very green. Once the US markets open, we are likely to have plenty of SPY buyers, all day.

 

[S2007S]

More free money tomorrow!


FUTURES
*S&P FUT
1122.40 +12.20 +1.10%
*DOW FUT
10478.00 +105.00 +1.01%
*NAS FUT
1929.25 +19.75 +1.03%

Its one of those days where the markets open up 1-1.5% and rally throughout the day closing up easily over 1.25% and possibly up over 2%.

 

[S2007S]

OIL
78.09 +0.92 +1.19%


Dow back above 11k and oil could be headed to 90+ just in time for summer!!!

 

[S2007S]

What happens if the yuan opens unchanged tomorrow.

 

[dhpar]

Quote from sirgiyan:

For educational purposes I would love to know why does everyone talking about bonds diving? What is the correlation with chinese decision (let's assume it's not bluff)

Thanks

many reasons. for instance a strong currency (CNY) decreases the trade surplus. therefore less dollars gets recycled into treasuries. therefore less demand at auctions - bonds drop.