Monday 7 September 2015

Samurai Summary: Top Tweets 07/09/2015

I found this chart particular important in assessing possible points where the market could go in the next year or so. When looking at things from a longer term perspective it's interesting to see the bull run that ended recently was able to take the market higher without a significant pullback. It would seem as if the S&P 500 formed a double bottom formation on the monthly over a number of years. It broke out without any retest and gave a momentous push to the top. Given this index was technically sideways for many years this isn't surprising however all things come to an end with the chartist predicting solid support at much lower levels than where we are now.

I responded to a comment made by Simon Brown to elaborate the relevance of China's GDP growth number which Bloomberg analyst Pedro da Costa reported. His tweet went as so;


 Any nation would certainly have boasting rights having growth number at those levels but we should not forget that not so long ago China was growing at a staggering 12% per annum. At the height of these growth rates euphoria led many to believe that nothing could stop this amazing growth path the "Sleeping Giant"had embarked upon. Fast forward 5 years and growth is sitting at half it was before , whilst mining companies rapidly expanded their production capacities. What's come of this? A resources glut the world is unable to deal with.

Chinese Stocks were reopened after an extended weekend with much the same dizzying levels of volatility as it we've seen over the last while. Chinese officials came out saying that the worst is over in terms of mass market movements although not much weight is attached to statements such as these as they are seen as one of government methods to calm markets.


If you have a story you'd like me to cover why not contact me either through Twitter @CadeTradeR or email cadetrader@gmail.com
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