Agoracom: Small Cap Investment - The 300 Club - cheat sheet on how to react to market data

Welcome To The 300 Club HUB On AGORACOM

We may not make much money, but we sure have a lot of fun!

Reply New Message

Back To Forum List View

casey13

Rank: President [?]

Points: 11837 [?]

Votes: 66 Score: 3.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

cheat sheet on how to react to market data

posted on Sep 10, 2009 05:00PM

From Jim Sinclair today

http://jsmineset.com/

Here is a cheat sheet on how to react to market data releases in a 1932 or hyperinflation type equity market rally:

Weak data = Fed ease, stocks rally
Consensus data = lower volatility, stocks rally
Strong data = economy strengthening, stocks rally
Bank loses $4bln = bad news out of the way, stocks rally
Oil spikes = great for energy companies, stocks rally
Oil drops = great for the consumer, stocks rally
Dollar plunges = great for multinationals, stocks rally
Dollar spikes = lowers inflation, stocks rally
Inflation spikes = will inflate all assets, stocks rally
Inflation drops = improves earnings quality, stocks rally