Swing Trade

Dow closes above 10000 points for first time in a year

However one has to ask: Has the world grown 50% over the past year. Bear in mind the ‘debilitating financial crisis that plunged the world into its worst recession since World War II‘??

Are we coming up for a double dip recession!??

Personally I still believe this is another bubble!? As soon as everyone jumps on the train there will probably be a big sell, however I believe its going to dive for other reasons as well.
Less jobs = less spending = less tax for governments = Less

Oil is up to $75

As Charles Hodgson from CNN said this morning “Tears before bedtime”

With regards to my trading right now, I’m presently holding 297 Vodacom shares Wish I wasn’t due to the call terminations costings going down

Have a profitable day!

Nearly R70-billion worth of offshore funds have flowed into JSE-listed companies this year, on a net basis, according to George Glynos, the managing director of market analysis firm ETM.

Non-resident inflows already topped the R67.5bn invested in the local stock exchange in the whole of 2007, Glynos said. And they follow a R57bn outflow last year.
Foreign inflows have helped push the JSE’s all share index up 18 percent since the start of the year.

Glynos also said that according to technical analysis, the gold price could reach $1 300 (R9 560) within the next few months. The precious metal, which burst through the March 2008 record of $1 033 a week ago, touched a new record high of $1 068.30 yesterday before retreating to just below $1 060. It is 20 percent higher than at the start of the year.

The JSE and the gold price are beneficiaries of unprecedented levels of liquidity abroad, after the series of monetary and fiscal rescue packages in many economies over the past year.

“Large quantities of funds that have been cautiously sitting on the sidelines in risk averse investments ultimately need to be invested to generate stronger returns,” Glynos said. Global investors are seeking yield in emerging markets with a better growth outlook.

Glynos attributed much of the JSE’s recent gains to foreign investors because local fund managers, he said, “haven’t committed to the equity market in a wholesale manner”. He said they were more cautious about “rotating away from risk-averse asset classes such as cash” as interest rates in the money market were still compensating for inflation and offered security in uncertain times.

However, he warned the run up in stock markets and commodity prices did not necessarily reflect optimism about economic fundamentals.
To some extent, they demonstrated a lack of confidence in the US dollar and were a response to “ultra loose monetary policies” abroad.

The dollar’s role as the global reserve currency is in doubt as central banks round the world increasingly shift into other currencies, particularly the euro. Investors are also following suit.
Nedbank Capital said yesterday that the dollar was near a 14-month low against a basket of major currencies.

RMB commodity analyst Josina Oliphant said gold responded more to dollar weakness than most commodities.

Source: Busrep.co.za

The head of Britain’s biggest bank has warned we could soon be heading into a second recession.

Michael Geoghegan of HSBC said he had delayed expansion plans because he fears the upturn could be short lived.

The chief executive said the economy could follow a W-shaped trajectory, with the rebound going into reverse and growth retreating into the red.
Mr Geoghegan’s words carry weight because of the global reach of his bank and its track record on identifying economic turning points.

In February 2007, HSBC was one of the first financial giants to warn of the impact of the sub-prime crisis in the U.S., when it wrote off £6.5billion. The intervention will fuel the debate between Labour and the Conservatives over when to slash public spending and hike taxes.

Click here to read the full article on the dailymail.co.uk