MBO Issue 95 (Nov 2019) Time to Sell

By Lawrence


  • Review
  • Euro Not the Time to Touch It
  • S&P Delaying the Inevitable Means a Steeper Correction Ahead
  • Gold Shaping Up for More Upside
  • Big Picture Summary


Euro another try to break the channel resistance. Outcome still to be decided.

S&P spent 3 weeks in correction and the US-China trade deal plus stellar earnings gave it the boost necessary to breakout to new all time high.

Gold found support at the highest support zone. Bullish setup intact.

The strength in S&P is reasonable given the near unlimited resources being throw behind the buyback programs by all the major component companies in the index.

The swing trade setup did not materialize as SPX successfully recovered above 2980 quickly and has been staying above that since.

Another boring month with no surprises but it looks like the delay of fireworks that was supposed to happen last month will magnify in something even more wild than originally expected.

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  • someih123 November 6, 2019 at 4:16 am

    There are a lot of reasons in the riots in HK, not just discontent of the younger generations… It is difficult to read the story of HK.

    • Lawrence November 7, 2019 at 8:04 am

      Current HK situation is extremely complex and is the result of multiple players all chipping in to stir the pot. I choose not to comment about it anywhere in public because people are too opinionated to see how complex the situation is. The comments here are visible only to premium members. =)

  • melvyn November 9, 2019 at 1:46 am

    More importantly LC, since banking is towards the end, where to park money? Are asset class properties still good?

    • Lawrence November 9, 2019 at 12:37 pm

      Banking is transforming. I would not be surprised eventually that basic banking service will be taken over by governments as a basic service with no interest and no human tellers. Lending and mortgages will likely be fragmented into companies that specialized in doing that.
      Think of this as a swing from big is better back to small is beautiful.
      We are seeing this happening will many online businesses already. Essential services (google, amazon, etc.) stays big while niche market players popping up everywhere from selling T-shirts to all kinds of services.

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