The S&P500 has rise up 8 points off yesterday and sitting slightly above the important support line at 750. This is likely due to a technical bounce off since yesterday sell off. Will this spark a new buying interest for the investor ? 

I certainly do not think so… We have to see how it close today after the hearing of Mr Bernanke testimony. 

As i said before, we are at a major crossroad of the economy. Thus either direction will be a big setup. The stress test against the bank will be a big thing throughout the week. This will affect the market greatly. 

Nationalize or Not ? 

Nationalizing the bank will not solve the problem as taxpayer will be responsible for the bank. The best thing to do is not to do anything but the government has already putting 2 legs into the market, hence they can’t just allow it to die. I guess most likely they will keep pumping money into the distress bank like Citi and BAC. This will help to shovel up their capital and the confidence of the investor. 

Investment in this kind of environment is extremely risky yet the reward will be great once the waves has died down. 

Citigroup really never sleep. Day in Day out stealing the limelight. Please stay low, stay under the radar. Please do not get nationalize, well 40% own by government will be good enough and from there on please just stay away from the news.

Citi just need to work their butts off and get ride of the toxi “assert”. Sell it at a okay value for once. I dun care you drop to penny stock. I just need assurance. I will scope up all the value you have once you are declared.

Okay enough of rattle. Look like the market is going to test the low again as i type this post. The Dow Jones Industrial Average inching to the low of 7000 mark with S&P500 close to 750 mark and Nasdaq close to 1400. Once again we are at a critical junction.

Will we see a Technical Rebound or Dead Cat Bound?

A group of Chinese from China is heading down to the US on 24th of Feb go hunt for bargain houses at foreclosure prices. According to the chinese website, more than 500 people has sign up for the trip. Only roughly 50 affluent house hunters from all across the China are being selected for this coming trip.

The tour include de-stress houses from Boston, New York, San Francisco and Los Angeles . Their mission is to find investment property at the range of $300k to $800k apiece.

The tour is being organize by Soufun.com, China’s leading real estate website. This is the first overseas buying trip for the real estate firm whose name in Chinese means “search for houses”.

This buying spree might open up the interest from the Asia investor which will in turn create a reduction of the housing inventory in US and thus create demand in the future. If the government in US encourage more affluence buyer from the east, this will solve the housing problem at a faster rate.

The Chinese with loaded cash will be itchy for the piece of land or houses in the far west. This trip may not be the last and it may just be the beginning of a new influx of the east buyer in west.

This is definitely a good news to the housing industry in US.

For more information please check out the website www.soufun.com

We are at a crossroad and critical junction of the global economy. Gold has just top the 1000 level mark and sitting slightly below it. USD dollar has been rising due to the flight to safety behavior from the investor. Euro dollar has been slipping further down due the imminent default danger from the Eastern European Countries. The US major indexes are going to retest the November 08 low. The Japanese Market reach near to the low too. Oil seem to keep slipping down.

This is the deciding crossroad that will make or break the investor. People will want to rush into Gold now. But is it really wise to do so? I think the hype is too much and yet i guess gold investment still have a few legs up. Therefore i will be prudent to wait for it to stable at the 1000 level first before deciding to enter the market.

EUR/USD continue to hover between the level of 1.25 and 1.3 for the pass few weeks. The level of 1.25 has been tested recently. The EUR/USD will likely to continue range bound at a area of 1.25 to 1.3 as the world still not sure where to park their money.

On friday close, the US dollar index has fallen dramatically and this might be good to the market for the coming week. This is because base on the inverse relationship between the US dollar index and US Market at this period of time.

Keep an eye on global economy and be prudent on investing in either Gold, Oil, Dollars and US Market.