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Dr. Stocks-PHD Twenty year Wall Street veteran. Hollywoods direct line to Wall Street. Specialize in market timing and predictive modeling. Follow my updates via twitter/tkathlinastocks and at my blog
My company:
After The Bell
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After The Bell
  • Before The Bell-CHINA Intervention Bernanke Style YINN and YANG Jan 10th  0 comments
    Jan 10, 2012 9:38 AM | about stocks: YINN, YANG

    In order for stocks to be in a bull market, Central Banks have to step in and force the people to purchase shares buy destroying all other investment avenues. The Ponzi system is so roted with debt and fraud, natural market mean revisions must be avoided at all cost.

    Today, according to ZeroHedge report, CHINA bankers have come out swinging: Bloomberg report on what is about to take place in China: "China’s stocks regulator will “actively” push pension and housing funds to begin investing in capital markets, and encourage long-term investors such as insurers and corporate pension plans to buy more shares."

    This first chart is YANG, etf short China. I have circled a clear DOJI pattern; which in normal circumstance being at the bottom of the BBands, would begin to peak my buy interest. DOJI is defined as: Doji is a particular signal showing indecision about the direction of the market and it represents a tug of war between buyers and sellers.
    So, in other words, what was a strong downtrend, found an equal footing between buyers and sellers, or price discovery. But after today's CHINA news, forcing retirement funds to buy over leveraged, worthless stocks, it doesn't take to much guess work to see which way this will be resolved.

    YINN is the bull etf for China. The last two candles formed a Bullish Homing Piegon, defined as:
    The Bullish Homing Pigeon Pattern is a signal of disparity. In a market characterized by downtrend, we first see heavy selling reflected by the long, black real body of the first day. However small body of second day points out to diminished power and enthusiasm of the sellers thus suggesting a trend reversal.

    In this case, the "diminished power and enthusiasm of sellers" is being forced by Ponzi scheming Bankers who are intent on beating the house; the house being the natural order of markets.
    Conclusion: CHINA has long been building bridges to nowhere, lavish cities with no residents, and the largest shopping malls in the world with no shoppers. Over the last year however, the gig was finally up and the natural order of market mean revision has begun.
    Just like with the US Fed QE and Twist Interventions, in the short run, some upside easy money can be made. Just don't stick around the after party celebration too long.
    Tim Kathlina
    Stocks: YINN, YANG
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