- Dow Jones 17,798.49 -14.90 (-0.08%) (chart: blue)
- Nasdaq 5,127.52 +11.38 (+0.22%) (chart: gold)
- S&P 500 2,090.11 +1.24 (+0.06%) (chart: red)
- Rus 1k (RUI) 1,160.15 +0.87 (+0.07%)
- Rus 2k (RUT) 1,202.38 +4.36 (+0.36%)
- Rus 3k (RUA) 1,239.30 +1.20 (+0.10%)
- CBOE (TNX) 22.25 -0.07 (-0.31%)
- S&P500 Volatility (VIX) 15.12 -0.07 (-0.46%)
As an economy built on “assemble it and export it”, China knows it is way behind on the Intellectual Property curve, as well as the “how to” curve. China embarked on a strategy to acquire intellectual properties and secrets. China embarked on hacking, but failed to grasp that it lacks the “how to” which, isn’t written down, and China can’t steal (hack) “how to” … means … if you hack, but do not understand “A’, and you hack, but do not understand “B”, the “how to” of putting hacked A together with hacked B and making it work is next to impossible and reduced to a lengthy trial and error process. China now gets that, trying to get USA companies to build partnerships with the USA partner transferring IP and “how to” to the Chinese partner, as a REQUIREMENT. As that doesn’t seem to be drawing takers, China, thru a privately owned, non-public, Chinese company, is trying to BUY, hasn’t given up on buying Micron Technologies (MU). Micron, thanks to its Intel (INTC) partnership, as well as Micron’s and Elpida’s R&D, is the BEST of IP and ‘HOW TO” breed … not just for the IP, but for the “HOW TO”!
Note to Mr. & Ms. Fickle Markets: China has the money. China gets it needs both Intellectual Properties, and the “HOW TO”, something Mr. & Ms. Fickle Markets currently, MISTAKENLY, places so little FUNDAMENTAL value on in USA companies … like what the USA lost when Japan bought the USA created VCR IP.
- How many VCRs did the USA manufacture?
- How many VCRs did the USA buy … from Japan?
- Mr. & Ms. Fickle Markets are you PAYING attention to the VALUE China is placing on acquiring IP and “HOW TO” ??
Also, China didn’t, and doesn’t have, a retirement, and/or social security system … so China motivated its citizens to BUY gold, telling them not to worry about the price over time, even guaranteeing gold would go up in price … China even began selling gold in grams through its local post offices.
Problems, Strategy Resolution, Failures … and Blunders?
Apparently, to convince global investors, like its 1.4 billion citizens to BUY stocks of Chinese companies, China’s stock market regulators discussed, debated, and felt they needed to add hedging and short selling to China’s stock market toolbox. China’s stock markets regulators (my vote for “the” worst idea for 2015) authorized short selling of a list, not all, of Chinese stock markets listed companies, and China’s stock markets stopped rallying, trended sideways, and then crashed. Short selling in China, though short lived, is getting people arrested, and Financial organizations, their managements, and China’s citizens are nervous. Now, the Chinese government is looking for culprits and scapegoats. Not an investor friendly environment.
- So, China’s citizens, to participate in China’s stock markets rally … stopped buying gold … and how has that worked out for gold?
- Too many Chinese citizens, that entered the stock market late to the party, buying on margin, got wiped out by the short selling authorization, … and how has that worked out for China’s internal consumption?
We, the USA and the EU, need China as much as China needs us.
(a) China’s stock markets are fixable. Honesty and transparency, should be the best China government stock market policy. Chinese financial advisors should be able to analyze a Chinese company fundamentals, technicals, and sentiment, and express an honest RISK versus REWARD assessment, including an individual’s humble opinion, on buying, or selling. China needs fully functional stock markets, with controlled margin, with call/put options, including LEAPS, with covered call options selling, but, until China allows the truth to be told, without censorship, without fear of arrest … NOT short selling.
(b) China’s internal consumption is fixable … although now, it has a much longer road to travel … perhaps 5 to 7 years before prudent planning, as opposed to piecemeal schemes, bears fruits.
(c) China needs a comprehensive environmental protection plan that guides businesses, and manufacturing, to produce, and grow, while NOT polluting the land, air, and water. Here, the Chinese would, should, setup a commitee to study the USA’s Code of Federal Regulations Title 40 Protection of the Environment regarding Air, Land, and Water Environmental Protections as well as the process as to how the USA, through discussion, debate, and input, seeks to protect our environment while arriving at less burdensome, satisfactory, pro-environment, pro-business protections. USA environmental sector and industry businesses are sorely needed, and should be welcomed, in China.
(d) More to follow ….
(a.1) The DJIA, from its low of 15370.33 on 8/24/2015, is up +2428.16 points, or +15.798%
- Friday’s 1 PM ET early close brought the DJIA down 14.9 points.
- a negative 52 week performance of -0.16%,
- a negative -0.14% year to date performance,
- -552.87 points down from the DJIA’s 52 week high of 18351.36, or -3.016 percent.
- The DJIA is +5.77 points above its Pivot Point for Monday, 11/30/2015
- Friday’s 1 PM ET early close brought the Nasdaq up 11.38 points.
- a positive 52 week performance of +7.01%,
- a positive +8.27% year to date performance,
- -104.42 points down from the Nasdaq’s 52 week high of 5231.94, or -1.996 percent.
- The Nasdaq is +4.06 points above its Pivot Point for Monday, 11/30/2015
- Friday’s 1 PM ET early close brought the S&P500 up 1.24 points, or +0.059%.
- a positive 52 week performance of +1.09%,
- a positive +1.52% year to date performance,
- -44.61 points down from the S&P500’s 52 week high of 2134.72, or -2.09 percent.
- The S&P500 is +0.93 points above its Pivot Point for Monday, 11/30/2015
- Index, Close, 52Week Hi, Change, %Change, Friday, 11/27/2015
- DJIA .. 17,798.49, 18,351.36, (-562.87), (-3.013%)
- NASDAQ .. 5,127.52, 5,231.94, (-104.42), (-1.996%)
- S&P 500 .. 2,090.11, 2,134.72, (-44.61), (-2.09%)
- Russell 1k 1,160.15, 1,191.59, (-31.44), (-2.638%)
- Russell 2K 1,202.38, 1,296.00, (-93.62), (-7.224%)
- Russell 3k 1,239.30, 1,275.89, (-36.59), (-2.868%)
- CBOE TNX 22.25, 24.89, (-2.64), (-10.607%)
(Tags-1) Indexes, Index ETFs, and Sector ETFs:
DJIA, DIA, NASDAQ COMP, QQQ, SPX, SPY, RUI, RUT, RUA, IWM, TNX, XLB, XLE, XLF, XLI, XLK, XLP,
XLU, XLV, XLY, FAS, FAZ, HGY, JNK,
AA, AAPL, ALL, C, CHK, CMCSA, CMCSK, CCZ, CSCO, CUR, DHT, FB, GE, GST, HES, HPE, HPQ, IBM, INTC, JCP, KGC, LOR, MPC, MSFT, MVPI, MU, NCR, QCOM, RMBS, SSE, SDRL, TDC, TWC, VRNG, WDDD,