China’s Massive Lending Cut
Stratfor is reporting that “China’a 4 largest banks cut lending by about 99% in the first 2 weeks of May compared to lending in the whole of March”. I first read about this on Stratfor’s site yesterday and I’m shocked that this hasn’t been reported by other financial news sources. I encourage you to sign up for Stratfor and read the article. They talk about the back-room political battle for solving China’s economic dilemma’s and discuss several internal intrigues. It is fascinating. I am a China bear and I have always thought that the...
read moreWhere is the fear?
The Up-Down Volume Thrust (UDVT) indicator measures the number of stocks that are either up or down a fixed volatility multiple on high volume. It tries to measure the money coming into or out-of the market but it is also a great way to measure fear and panic. Take a look at the chart below. I have highlighted the massive spikes down during the panic selling of last year. Notice how these spikes down turned out to be capitulation selling days and were quickly followed by significant bounces. In the current market, we have seemed to go down every day for the last two weeks but we...
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