Around the Net in 10 Posts – Wednesday May 9, 2012

Here is what I have been reading (and trying to decipher) today morning: German Patience With Greece on the Euro Wears Thin (The New York Times) India addresses concerns of foreign investors regarding General Anti-Avoidance Rules (GAAR) (The Economic Times) Greece fears put shares under pressure (Financial Times) Major correction unlikely (MarketWatch) Assessing Yet Another Round of the Structural…

Will There Be a Dead-Cat Bounce Today for S&P?

On May 08, 2012 S&P Index ($SPX) made a hammer, at a short term support zone – April ’12 low of 1357 and March ’12 low of 1340. Hammer is a bullish reversal pattern that forms after a decline. (see StockCharts). In this case, the decline has been short – only five days since May 01. Hammers signal a bullish reversal as the long…

Secret Support For Volcker Rule

Editors of Bloomberg were surprised to learn that Rep. Paul Ryan is, maybe, a closeted Volcker Rule supporter. “If you’re a bank and you want to operate like some non-bank entity like a hedge fund, then don’t be a bank,” the House Budget Committee chairman and the Republicans’ leading policy wonk said. “Don’t let banks use their…

Around the Net in 10 Posts – Tuesday May 8, 2012

Here is what I have been reading (and trying to understand) this morning: Private Jobs Increase More With Democrats in White House (Bloomberg) Long Term Secular Cycles on S&P (The Big Picture) Call On EFSF/ESM To Fund Bank Recapitalisation (ForexLive) Christine Lagarde urges indebted European countries to cut deficit slowly (The Sydney Morning Herald) Can…

To Cut or Not To Cut, That is the Question

IMF head is asking indebted countries to reduce deficit slowly. “Christine Lagarde said in a speech in Zurich that  steep cuts tend to slow an  economy, particularly if a nation is already  suffering from weak growth.” French President-in-waiting, Francois Hollande, is going to put France on a new course. “Europe is watching us, austerity can no…

So What to Make of Euro?

The widely expected victory of Francois Hollande in the just concluded French presidential election is going to pose a fresh challenge to the German-dominated policy of economic austerity in the euro zone. Here is from AP: “Socialist Francois Hollande defeated conservative incumbent Nicolas Sarkozy on Sunday to become France’s next president, heralding a change in how Europe…

Tough Days Ahead For UK?

The UK economy is in the midst of a double dip recession – its first since 1975. “The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012.” UK manufacturing is slowing down drastically increasing fears for growth. Despite this Prime Minister Cameron does not plan to abondaon austerity…

Is The Latest Chinese Bear Market Over?

Some very good strategists are turning bullish on the Chinese market. “China’s longest bear market since 2005 is ending as government efforts to bolster the economy spur a rally in stocks, say the strategists whose buy recommendations two years ago preceded a 34 percent gain in the Shanghai Composite Index.” From a high of 6429…