Every day I dissect the news of the day into bite sized snippets using Tweets I find on Twitter. My goal is to make sense of the news so that the reader has an easier time understanding it better and thus better placed to use that information more efficiently.
For those of you who may not have the time to follow my blog everyday I will post up an omnibus every weekend for your convenience to catch up. So let's jump right into thing;
Monday 14th September 2015
Samurai Summary:14/09/2015
Top Tweets Today:14/09/2015
The week started off with a look into the argument that Chinese officials may be distorting economic data to suit policymakers who are battling to jumpstart a sluggish economy that has seen a massive selloff in Chinese equities since June 12th this year which has spread into global markets causing concerns over the health of the Chinese economy. Growing skepticism has lead to analysts feeling in the dark for accurate readings of the national accounts of the world's second largest economy.
Now that the bears are in town it would seem every analyst or media outlet are taking their chance to call massive discounts in the price of vulnerable securities with this week Barron's calling an extra 50% drop in the price of Alibaba. We saw a similar stance taken by Goldman Sachs last week when they called oil sinking as lows as $20. Alibaba's management responded angrily to these suggestions and made some very good points why the data Barron's used was invalid for their company.
Tuesday 15th September 2015
Samurai Summary: 15/09/2015
Top Tweets Today:15/09/2015
Shock ousting of Australian Prime Minister Tony Abbott by own members of his party left the markets surprised at the unexpected move although there had been pressure from the public months leading up to it. He has been replaced by fellow party member Malcolm Turnbull, former communication minister who has promised to deliver leadership with a change. He inherits an economy that has suffered from the downturn in commodity prices as a result of China's sub par economic activity.
Every trader faces those demonic days where everything they touch turns into a pile rubbish which has a disheartening feel to it. This is how I would perfectly sum up my Tuesday however I decided to turn things on their heads and see the more optimistically part of things instead of concentrating on the negatives.
Wednesday 16th September 2015
Samurai Summary: 16/09/2015
Top Tweets Today:16/09/2015
Following the developments on Chinese equities on both Monday and Tuesday I had been watching things closely and lone and behold on Wednesday stocks decided to produce a 5 % rally however not without a frown. I found some great stats by fellow Tweeters that exhibit the height of volatility in Chinese stocks at the moment. Initially it seemed as if a comment made by MSCI CEO Henry Fernandez that Chinese A list stocks could be included in their global indices sooner than expected buoyed the market on to lift stocks higher.
However I went on to show how the margin debt held by brokers has fallen considerable which does support the argument that government is supporting the market and not retail investors. Government seems to be a mission to purge the market from any "impurities" that could affect its stability by not only threatening but enforcing a law that makes any person "spreading rumours" resulting in a collapse of stock prices, criminally liable to prosecution.
In an arena where the movements seen is driven largely by fear and greed it really isn't smart to add pettiness to the normal order of the day. It only serves to increase the level of fear even higher...
Thursday 17th September 2015
Samurai Summary: 17/09/2015
Top Tweets Today:17/09/2015
The day of the big announcement from the Fed over whether they would lift rates for the first time in 9 years. I decided to dedicate my whole day to covering this event as I felt it had the potential to change the course of future developments. The commentary I followed seemed in favour of no rate hikes because of global turmoil stemming from China however I did go on to highlight some of the risk that it posed for the Fed should they not lift the rate.
I predicted that I didn't think the market would react to whether rates stayed the same or raised but rather the statement made Fed Chair Janet Yellen which proved to be true with the markets at first feeding on Yellen's dovish tone until realising later on in the question session that she didn't seem to be painting a very positive outlook for the US economy as was expected and then decided to sell down the market in a flurry. Many say this wasn't the case as quadruple witching was due for the next day but one cannot simply negate such importance from this event given the nature of the build up.
Friday 18th September 2015
Samurai Summary: 18/09/2015
Top Tweets Today: 18/09/2015
The Fed Hangover was the name of the day for most markets looking to digest the news out the US late session on Thursday. I even highlighted a tweet by popular option & trend trader Steve Burns posting a picture of the difference between a tennis match and current market moves.
I also noted that Koos Bekker, former CEO of Naspers, whose stock price has seen a phenomenal surge over the past few years, sold off a significant stake of his holding. Bekker rid himself of his holding while he was on a sabbatical for a year only to return a year later in a new position of Chairman of Naspers. Questions have been raised to the confidence in the company matching previous years performance if the leading man behind superb growth selling off a mighty chunk is bullish for investor sentiment?
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