John Gaats

How To Survive the Market Sinkhole

I just sold my China holding: FXI. You think it is not related to subprime or credit cruch. But this one is among badly punished (I don't know for what). My concern is that even worse lost can happen if I keep holding. I hope that brave heart can profit from it later on. Man, this is bad.

President Bush Envisions a Soft Landing — What Does He Know?

I was looking for lines like "There is nothing to fear except fear itself". He didn't say that. In fact, I woulddn't believe it even if he said that.

All's Well In the Financial World Again, Which May Be Cause For Concern

I am also confused by recent up swing of mortgage plays and home builders. My concern is that they might lose more if they actively buy back their stocks like that. However, I hope those were true market actions where down swing shocks will be absorbed by others.

Dow Continues To Outperform the S&P 500, Almost All Sectors Oversold

The joke around here is that the trading floors have been taken over by aliens. They need time to figure out which ones are related to subprime/credit crunch. For now, all they know is to sell because they need cash for the summer vacation.

Yield Curve Versus Stocks On a Decade By Decade Basis

Good work.

Looks that the correlation changes from time to time. Right now, the yeild curve is like a back door for short sellers to hajack the market. If the correlation you mentioned here holds for good, the market could be controlled by special interest groups at the time of their choosing. That's the kind of thing that worries me.

Thanks again for the good work.

Rising Yield Curve Generally Bad For Stock Performance

Concluding that rising bond price is bad for stock based the two curves are apart is at best unscientific. I can pick two stock price curves that move in opposite directions (they are thousands of curves). But I cannot conclude one is bad for another. The most likely conclusion is that they are not corelated. I challenge you do a rolling correlation. Confirm your conclusion if they are negatively correlated. Based on my observation, the correlation is not stable. Therefore, You cannot conclude anything just by that chart.

Market Outlook Continues to Be Bullish

The bullishness has not been shown much in terms of the equity market. Then who said the market was a good measure of the economy. The way I see from the market index, investors seem to have some shame to hide. Then of course it is the market's way to hide things. In short, bullish is not something tangible when you bid and ask.

Two Day Declines: No Sweat Off This Bull's Back

Fear grabs everywhere in the market. Good stocks are asked at basement price. Please tell me when this is going to be over. I would like to buy a lot just before that

S&P 500 Snapshot: Stocks, Sectors Furthest Above, Below Their Moving Averages

Can someone translate these things into Chinese? May be it is a good buying opportunity for the Chinese government to use their trade surplus.