Tainted Alpha

New highs everywhere, but the feeling, at least for me is unsettling. Setting aside my skeptical mind, looks we could fly even higher. Still waiting for the right point to initiate short SPY position.

Today’s news from China was taken by the media as a positive surprise. China’s industrial production rose 12.3% yoy. New lending was at 60.1 billion USD up 15.3% mom and 51.1% yoy.  M2 rose 28.5% in August. Everything is blooming. On the other side. Exports on the other side fell 23.4% in August yoy. I wonder who is buying the stuff they are producing and how long can this last?

According to research by Barclays Capital investment in commodity products rose USD 2.63 billion last month, running at double levels than usual. Due the US regulatory initiatives second time ever European products gained more investments. The money is flowing into commodities, not sure will it reward its investors.

And some fun for the end of the week. WSJ link: Dear Chairman Bernanke

Ben Bernanke, China, China Industrial Production

This entry was posted on Friday, September 11th, 2009 at 6:45 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.