Reserve Banks intervention

Posted: July 31, 2015 in Uncategorized

As we see until the Reserve Banks of the world keep on intervening, we do not need to worry about a crash!

In the US the 27th The US Fed intervened after a 6 days rout (well, how do you describe an high volume of future future calls in the pre – open market with no particular news) and this set up for a nice week (which is correct as most of the US data release are positive).

Now, after the bear got burned, the US stock exchange is dazzled and calm. The US Fed is much more subtle and sophisticated than the Chinese one (well…they have a long history to base upon) and very effective.

China.

Notwithstanding the massive intervention last Monday (which involved also currencies USD/JPY) the market are still shaky and still aiming for a re test of 3,200/3,400.

China has a lot of power, but the Chinese market is mainly composed by retail investors (prone to gambling) which is much harder to assuage than institutions.

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