Hi, this is Mark, I was asked to provide some insight of my trading activities, and I think this is also a very good idea to keep people who have a keen interest of financial markets informed what I have done recently and what I think about the current situation of the global economy. Additionally, I will also add some other stuff beyond my career such as some video clips, movie recommendations, photos, news, music, and of course, my personal experience and some funny comments of the current issues. If anyone of you is interested of something you find in my blog, please feel free to drop me a PM or email to discuss whatever you like, I promiss I will get back to you as soon as i can, cheers my friend.
Well, let's just get back to the point, this week still maintains its choppy and uncertain style all through the weekdays, it is really diffcult to apply the common technical analysis and fundamental analysis into the market. On Monday, we have Moody's sovereign downgrade of Ireland to AA2 from AA1 with a stable outlook, and the main economic data for the day is NAHB Housing Market Index which came out worse than the expect. But it was strange that we had a new day high of S&P 500 then moved sharply lower. On Wednesday we have Ben Bernanke, who is the chairman of US Federal Reserve, delivered the semi-annual monetary policy report to the Senate Banking Committee, he pointed out the the US economy is "unusual uncertain", then there was a sharp 20 points sell off in S&P 500. On Friday, the widely concerned EU stress test result released, seven banks have failed the test and they need to raise 3.5 billion euros of capital, the amount of capital needed is much lower than the market expected. From my point of view, the result is generally good, but the judging criteria of the stress test is not very rigorous, and it is designed by the EU regulators to help the majority banks pass the test to restore investor confridence. The test may not have been strict enough because it ignored the majority of banks' holdings of sovereign debt. The evaluations took into account potential losses only on government bonds the banks trade, rather than those they are holding until maturity. On the earning side, more than 82% of companies beat the market expected, which includes IBM, Apple, UPS and MS, I am still very positive on the earning side for the next week, I think the upside trend on the equity will still continue. To sum up, this week the US equity market is lifting by a slight improvement of the housing data, the good earning number, and the good EU stress test result, the outlook of the double dip recession is less possible, but the recovery is slowing.
Last week is no doubt the one of the toughtest weeks for me, I have four small down days and only one outperforming day. However, I am not the type of trader who prefers digging in the past to find out what is going wrong, I would rather do more research on the future to get the more insight of the market condiction. Besides, regarding the blog itself, I will keep updating it with the latest stuff, such as my pothos, cilps and news, all sorts of stuff that can make my blog more professional and attractive, I would like you to keep following my blog, my friends.
