Hybernation is Over

After a long vacation, it is finally time to get back to analyse the stock market.

The stock market has been weak for the past two weeks during my vacation.

The weakness was due to Greece problem, potential interest rate hike across the globe and China's tightening its loan policy to curb asset bubble problem.

Since the Greece problem is temporarily supressed by EU initiated by Germany to bail out Greece, bubble effect should subside a bit. But there is also a fable initiated by Marc Faber or also known as Dr. Doom told CNBC on the 16th that China bubble will burst very soon. (refer to this report: http://www.cnbc.com/id/35444726)

Today's rally is due to US Fed assured that increase in bank discount rate may not mean the increase of consumer or business interest rate soon last Friday. Asia and Europe stock markets plummeted sharply last Friday after US increased its bank discount rate last Thursday after US stock market closed as Ben Bernanke used this method to stop the housing bubble in 2008 followed by cuts in consumer and business interest rate. Speculators may see the reverse of this may finally lead to increase in consumer or business interest rate that will cut the banks' profits.

I will touch more on USD soon. Hopefully I can run a full analysis of USD tomorrow. Happy Chinese New Year to my fellow bloggers!