10:24 am – Next support for DJIA at 9800/10000 level !
Archive for the ‘Market Report’
Market Report by Bill Wermine – Jan 25-29, 2010
Dear Traders,
What will impact the KLSE next week?
1 China has begun a tightening campeign to slow the growth of M2 money supply. When they raised bank reserve requirements to 16 % on 12 January, Shanghai plunged 3 %. If history is a guide expect more 
tightening in the weeks ahead. In January 2007 they lifted reserve requirements to 17.5 % and the stock market collapsed. This drains hu ge amounts of Yuan from the Shanghai money markets and lifts bank lending rates. Yi Gang, deputy head of the PBoC, said this is necessary to dampen the rise in consumer prices.
tightening in the weeks ahead. In January 2007 they lifted reserve requirements to 17.5 % and the stock market collapsed. This drains hu ge amounts of Yuan from the Shanghai money markets and lifts bank lending rates. Yi Gang, deputy head of the PBoC, said this is necessary to dampen the rise in consumer prices. Market Report for Jan 11-15, 2010 by Bill Wermine
Dear Traders,
Salvador Dali arrived 15 minutes late to our full house traders club meeting Saturday and that only heightened the expectations.
He did not disappoint just like the master painter who bears his namesake. He drew a picture of the current market and where to allocate our capital.
Market Report for Dec 28-31, 2009 by Bill Wermine
Dear Traders,
My conclusions for 2010 are:
Long term interest rates in most all countries are headed higher. The shape of the yield curve in the US is the steepest in over 30 years. This is a recovery signal. But it is an uncertain recovery like a sand castle on the beach. The big Tsunami wave can wipe away the castle at any time. 
By the 2nd quarter central banks around the world will be forced to exit their ultra easy monetary policies.
Bond prices in most markets will tumble- this is true for government bonds as well as corporate bonds.
As bond prices drop stocks will move ahead. Commodities, crude oil, gold will rise as inflation increases.
At some point when interest rates on bonds exceed dividends on stocks the Dow will experience a steep correction and pull down markets world wide.
