09/12/2015 Weekend Update

[DellGriffith]

SPY is sending a cloudy message. But if we assume that, until further notice, SPY is just a proxy for China, looking at China is a lot less cloudy.

The chart of FXI shows two things:

1. FXI has rallied into significant resistance
2. FXI is very overbought, almost extremely overbought.

FXI looks like it just completed a sharp bear-market rally and will roll over next week. That tells me US markets will also roll over next week....as long as US markets are still a proxy for China. But maybe the trend breaks and US markets begin to trade independently of China. We'll see.

[TraderJoe]

China's factory output rose 6.1 percent in August from a year earlier, the National Bureau of Statistics said on Sunday, missing market expectations of 6.4 percent.

retail sales climbed 10.8 percent, higher than 10.5 percent forecasts.

Annual growth in China's fixed-asset investment, one of the crucial drivers of the economy, slowed to 10.9 percent in the first eight months of 2015 from 11.2 percent in the January-July period, the bureau data showed.

September 13, 2015 — 2:36 AM CDT
China’s fixed-asset investment rose at the slowest pace in 15 years and industrial production trailed analyst estimates, raising further question marks over the effectiveness of government efforts to revive growth.

[TraderJoe]

Barron's devastating cover story on Alibaba predicts the stock will tank 50%, and that's not even the worst of it....

http://www.businessinsider.com/barrons- ... ent-2015-9

[Trades with cats]

Thanks for the China updates. Not surprising that things keep slowing down there, given the wages and retail sales numbers in USA. The rapidly increasing US wholesale inventory build could cause a real air pocket in China given the relatively long lead times on orders. So clearly my opinion is that the bad news will continue until all those wrong thinking reporters are locked up .

But the unanswered question for tonight is is bad news good (forcing more gov't intervention) or is it bad enough to be bad?

[tsf]

Source: J.C. Parets


Source: See It Market

[tsf]

[TraderJoe]

Thanks for the China updates. Not surprising that things keep slowing down there, given the wages and retail sales numbers in USA. The rapidly increasing US wholesale inventory build could cause a real air pocket in China given the relatively long lead times on orders. So clearly my opinion is that the bad news will continue until all those wrong thinking reporters are locked up .

But the unanswered question for tonight is is bad news good (forcing more gov't intervention) or is it bad enough to be bad?

Short answer;
More gov't intervention, READ here;
China unveils details of state-firm reforms as growth sputters
http://www.reuters.com/article/2015/09/ ... 4420150913

[koolblue]

SHORT TERM THE MARKET IS MOUNTING A CHARGE BUT NEAR RESISTANCE.

[Al_Dente]

Relatively speaking, who in the world is stronger than SPY?
(Green = stronger than SPY; red = weaker than SPY)
https://stockcharts.com/public/1684859