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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (19272)	5/25/2017 4:37:20 PM
From: benwood	1 Recommendation Recommended By richardred Respond to of 33421

The first one of those opened near my house. I've walked by it many times, but never set foot in it. Violates nearly the whole point of bookstores, imo. Far far better bookstores left standing in Seattle, although Amazon would love to kill them off too, plus all other retail. Just order from them! Their robots will grab it, pack it up, and driverless cars or drones will deliver it. Art will be cheap to buy, because it will be the only job left to do, unless you want to work in a coal mine. We can just sit on our couches and bleat, "Alexa, download the number 1 best seller to my Kindle and get me a big pizza from somewhere and a large pop of some kind! And put out a hit on that barking dog next door!"

To: richardred who wrote (19272)

5/26/2017 12:29:43 AM

From: John Pitera

Respond to of 33421

FXI analysis from GZ's thread

Message 31122297

Hi GZ,

You have got a nice tight stop with room for FXI to fill the gap and still keep you in the position.

The daily chart looks good

FXI has made a new yearly high, the accumulation/distribution chart is rising and looks good as is the Money Flow indicator... Money going into the stock on upticks. The RSI moving average crossover system is in buy mode and there are no divergences... all of that is great, and the price was above the upper Bollinger Band today as it was a few days ago... so we should see higher highs where the price is not above the upper BB which would show momentum deteriorating......... that has not happened....

The Weekly chart of FXI:

Price is above upper BB band: good

Aroon indicator is bullish

the Chalkin Money Flow has just turned positive. -- good

RSI MA crossover system is on a buy and the RSI has lots of room to run , no divergences -- very good.

The Monthly FXI chart

There is some overhead from the highs of 2016 and 2007.... but that was quite a while ago, the volume is a little on the light side....

So Technically the charts are pretty darn good bordering on great. Now this is a China stock ETF and so we have to remember that the Chinese crackdown on the shadow banking system has been depressing some Chinese assets and the yield curve was inverted a bit last week with the 3 year bonds being higher than the 5 year bond.

Moody's did downgrade China the nations credit rating a couple of notches the other day... but there is always palace intrique when it comes to China and the unique way that they run their unique brand of State Communist / Capitalism.......

but the stock is going up on bad news so you have a textbook good logical reason to be long and a very well chosen stop.....

You are all aces my friend...... solid thinking as I see it. It is starting to feel like 1998 -1999 isn't it.....

but it may feel even more like the spring of 1997 or the spring of 2004 and very bullish things happened to the Equity markets on the last 2 Magical Mystery Tours.....

youtube.com

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Moody's downgrades China over debt worries
May 24, 2017 2:03 AM ET|By: Yoel Minkoff, SA News Editor

China's great wall of debt! Moody's has lowered the nation's credit rating to A1 from Aa3, with a stable outlook, citing Beijing's waning financial strength and rising liabilities.

It marks the first time a major ratings agency has downgraded the country in more than 25 years.

The move received a backlash from China's finance ministry, which said the decision was "absolutely groundless" and was based on an "inappropriate method."

Shanghai -0.8% to 3,037.

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JJP

To: richardred who wrote (19272)	5/26/2017 12:48:24 AM
From: John Pitera	3 Recommendations Recommended By Hawkmoon richardred roguedolphin Read Replies (2) \| Respond to of 33421

Hi Richard, you are extremely prescient in seeing the future possibility of Sherman anti-trust action on AMZN. Clearly the millenials and the significant and apparently growing "Bernie Sanders" wing of the Democratic party could well take a very dim view of a Goliath like AMZN somewhere down the road... AMZN is seen as destroying so many retail business chains, not to mention the innumerable Mom and Pop stores that has been subsumed by the AMZN steamroller..... Bezos is very wisely and publically selling a big chunk of stock each and every year to put the money in some of his other businesses and in his rainy day fund. Since Bezos was an investment banker prior to founding AMZN he has always had quite a feel for the way that Wall street works. It was widely reported back at the .com mania top in 2000 that he had worked with Credit Suisse and had them create synthetic puts and customized Over the counter products and he was said to have sold several billion dollars worth of AMZN back at it's stratospheric highs of those heady days. the margins at AMZN have always been very small and I believe they have only had quarterly profits about 50% of the time since they went public in 1997 JJP