wednesday brainstorming

1. Markets turned around as expected and are running into the Apple hype already after good earnings from some tech names a big upside surprise ( actually now idea what this analysts get paid for – as it is not a real one). We are ready to complete the volatile top-building process as we have finished now  the brief consolidation and are heading for new highs but not for all indices. The next days may be a bit tech heavy though as Venus will be conjunct Uranus on the 22nd. NDX should test the gap again in the 2360-90 area but after Apple announcement after market the biggest chunk of the tech rally will be over as Apple has still a 20% weight.

DOW and SPX should take over next week and make some modest new highs into May. The FED has run its course as it is now trapped in better looking eco data it cooked and an exploding inflation which makes it hard to come up with any QE3 – plus the simple effect that the S&P rating agency has created a negative momentum and any wrong move can cause a crash in Bonds which is just a matter of time.

At the same time China is creating a scenario to undermine the USA economically with the push to create the Yuan as a reserve currency as it is selling out its US treasury position swiflty for 4 months now and buying Gold and other commodities. Thats is a smart move but with the bailing out of PIIGS they are loading up the next loses on sovereign debt. They are positioning themselves for a tougher position against the USA as the cyber-war is in full motion although hardly mentioned in MSM. The bigger turmoil in the Middle East which is in the pipeline  will bring a clearer picture soon. With the weak Dollar America is also selling out its privilege to be the first bidder on oil reserves. The only missing link is that a Chinese jet can take an US jet down, which will still take some years. I assume as America is forced to cut into its spending with all the debt and China can ramp up military R&D, its a matter of time.

excerpt

HONG KONG—China is accelerating efforts to push its currency deeper into world markets, racing ahead with a series of moves toward a new financial ecosystem with the yuan at its center.

A senior Hong Kong monetary official told The Wall Street Journal on Tuesday that China’s central bank is “actively considering” new rules that would make it easier to bring yuan funds raised offshore back onto the Chinese mainland.

Changing those rules would remove a choke point threatening the fast-growing market for the Chinese currency—also known as the renminbi—that is developing in Hong Kong and elsewhere outside mainland China’s borders. …

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~ by behindthematrix on April 20, 2011.

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