Thursday Night Market Thoughts and China

$$ - Stock market thoughts tonight... This morning, I thought it was funny that the TV folks were almost celebrate a slowing Chinese economy, because that would allow China to "stimulate" their economy.  It used to be that when economies slowed down, folks worried about recessions, layoffs, jobs, and other economic concerns. Now it's a reason to celebrate, because it means that the central bankers and government can increase debt and stimulus!

It's all backwards. We should want stronger economies, which would reduce the need for additional debt.  The best way to reduce debt is a growing economy that would increase tax revenues and lessen the need for debt. Although, these days I suppose the government would just spend the money and still deficit spend.  It's just what they do.

The market has had a nice run and is back near the highs. It does feel a bit toppy, yet the market may be pausing and catching its breath.  I still have cash on the sidelines and low-beta stuff, but I've been rotating cash in and out of some sectors trying to play oversold bounces.

Why?

I've been working on a black box that trades in the short term, and after testing and tweeking, I am trying it with real money.  So far so good, but the market is near highs.  That makes all systems look good, right?

Still expecting the market to turn back down sometime around here.  Looks like the markets in Asia are reacting to slowing Chinese economic data.  We shall see if that carries over to Europe and the US.

Volume is light...  Don't short a dull tape, right?  But that can also create some volatility.  Maybe.

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Asian Stocks Fall as China Exports Miss Estimates; Corn Rises
BLOOMBERG NEWS | AUGUST 9, 2012
http://pulse.me/s/c5yU7


Asian stocks fell for the first time this week and copper retreated after worse-than-expected Chinese trade and loans data added to evidence that the... Read more

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