If you happened to blink last Thursday, you probably missed an event that contains powerful implications for investors and, well, pretty much anyone who has a stake in the economy. That’s when China’s Shanghai Composite Index experienced a 6% swing, going from a roughly 1% loss to a 5.6% gain. And this happened over the course of a mere two minutes.

To put that in perspective, the Dow Jones Industrial Average (DJIA) would need to undergo a 900-point swing to experience a similar move.

In other words, it was a huge intraday move, but a staggering two-minute one. Read more about ETF Periscope: Chinese Flash Crash Reminder That Volatility Lurks Always

daniel / Tag: DJIA, COMP, SPX, FDN, SOXX, FXL, SMH, QTEC, IGV, VGK, Flash Crash, volatility, Shanghai Composite Index / 0 Comments

Wall Street continues to make summer investors smile as new highs in the major indices were touched on throughout the week. The benchmark S&P 500 Index (SPX) recorded a gain of 0.7% on the week, which puts it in the black for the year to the tune of 18.6%. The Dow Jones Industrial Average (DJIA) posted a small but solid 0.5%, while the Nasdaq (COMP) ended in positive territory by a slight 0.3%.

The past week’s gains may be slightly due to inertia, because it’s not exactly like there has been a plethora of positive economic news to support the record highs. It’s more like a dearth of bad news that has been the prime reason the equity market continues on the same merry uptrend that it’s been riding throughout most of 2013. Read more about ETF Periscope: A Good Time to Buy the Dip In China Equities? (Part 4)

daniel / Tag: DJIA, COMP, SPX, JPM, FXI, EWH, MCHI, GXC, HAO, PGJ, China, Shanghai Composite Index, G20 / 0 Comments

So far, July is looking pretty sweet for those investors who have decided to swap the pleasures of the beach for an extended Wall Street voyage through the summer.

For the moment at least, the market seems to be righting its ship after a fair amount of buffeting following Ben Bernanke’s comments regarding the Fed’s intention of tapering off its ambitious bond purchase program.

Apparently, investors have been comforted last week by his new and improved comments, the ones offering reassurance that the tapering isn’t quite as imminent as he first indicated, and that he is really, really advocating for continuing the money stimulus along its current trajectory. Read more about ETF Periscope: A Good Time to Buy the Dip in China Equities? (Part 3)

daniel / Tag: DJIA, COMP, SPX, JPM, FXI, EWH, MCHI, GXC, HAO, PGJ, FED, China, BERNANKE, Shanghai Composite Index / 0 Comments


Volatility has, indeed, calmed down a bit last week, compared to the previous one, as some soothing words from some of the Fed’s top monetary policy officials seemed to balance off Ben Bernanke’s earlier comments regarding the imminence of QE3 tapering.  It did seem to be an orchestrated attempt by Fed officials to stabilize the markets following the strong negative reaction that occurred in response to Bernanke’s comments that the bond-buying program would be reduced much sooner than investors had anticipated. If this was the intended reaction it worked . . . Read more about ETF Periscope: A Good Time to Buy the Dip in China Equities? (Part 1)

daniel / Tag: DJIA, COMP, SPX, FXI, PEK, MCHI, GXC, volatility, FED, BERNANKE, China, Shanghai Composite Index / 0 Comments