Camp At 1000
The short term top I wrote about in earlier posts evolved to nothing more than just a dip buying opportunity and it looks like we are going to stay range bound unless we have some surprise news. The economic data from the last week was boring, nothing interesting even a bit, and nothing that would change my views. Only piece of data that occupied my mind (for few second at least) was unemployment report. Non farm payrolls for August came at -216k vs -230k consensus and -276k in July (as usual revised downwards from -247k). Unemployment rate hit 9.7% vs. 9.5% consensus. Obviously the pace of job losses has slowed down, but with such high unemployment the recovery is not just around the corner. Off course, media can find optimism in the worst piece of data. According to Bloomberg this is positive for company earnings. Yeah, sure…. Bloomberg link: U.S. Recovery Leaving Workers Jobless May Spur Company Profits
Chart 1. S&P 500
The Shanghai Composite had a nice run after the Mondays mini crash, but it looks its loosing steam. Dry freight is still looking fragile according to the various news stories, so my guess is still the economy there is still heading for some kind of slowdown.
Chart 1. Shanghai Composite
Interesting prospects for uranium. Bloomberg story: China to Build More Nuclear Plants, Japan Steel Says. And Warren Buffet’s investment has sold 31 cars while share price has quadrupled or so. Bloomberg story: Buffett-Backed BYD Seeks China Subsidies to Spur Hybrid Sales. Interesting technology (if it’s true), 300km range and 10 minutes to charge a battery half full. Stock worth having on the radar.
US market closed today for the Labor day, the real trading week starts tomorrow.
BYD, China, Nonfarm Payrols, S&P 500, Shanghai Composite, Uranium