Week of Jan 18 2013 – Weekly Recap & The Week Ahead
“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine–that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.” — Jesse Livermore
1. China May Open Capital Markets Further — per WSJ, the Chinese government could substantially increase the amount of money foreign institutional investors can invest in the nation’s capital markets, its top securities regulator said. China could boost quotas for foreign investment in its capital markets by 9-10 times, Guo Shuqing, the chairman of the China Securities Regulatory Commission stated.
2. PC sales fall as Windows 8 fails to make impact — Global PC shipments fell 4.3% to 90.3M units in Q4, Gartner said, due to the rise and rise of tablets, although the firm’s estimate is slightly less pessimistic than that of IDC.
3. Chicago Fed President Charles Evans “Fed could end QE if 1M-1.5M jobs created” — Chicago Fed President Charles Evans has said that the Fed could end its bond-buying if the economy creates another 1M-1.5M jobs over the next six months to a year. “That would be indicative that we could stop,” said Evans.
4. AAII Bull/Bear Sentiment — below a chart depicting Bull/Bear Sentiment indicating the market is short-term overbought;
5. Rio Tinto approved iron-ore expansion plan — Rio Tinto (RIO) has approved a major expansion of its Australian iron ore mines, in the latest sign that a roughly 80% rebound in the price of the steelmaking commodity since September is rekindling mining investment in the resource-rich country. Rio Tinto, the world’s second-largest producer of iron ore after Brazil’s Vale (VALE), said it aims to increase production capacity in the remote Pilbara region to 360 million metric tons a year by mid-2015. The Anglo-Australian miner had already approved lifting capacity to 290 million tons by the end of this year.
6. Global regulators ground Boeing’s Dreamliners — the FAA and regulators in Europe, Japan, India and Qatar have ordered the airlines under their jurisdictions to ground their 787 jets until Boeing (BA) can resolve problems with the aircraft’s lithium-ion batteries.
7. Chinese economy re-accelerates — China’s GDP rose 7.9% on year in Q4, slightly beating forecasts and topping Q3 growth of 7.4%. The re-acceleration confirms that the government’s stimulus policies and a boost in trade have started to pull the economy out of its slowdown, although the full-year growth of 7.8% was the lowest since 1999.
The week ahead — Economic data from Econoday.com:
