Now that my new book has been published, I am beginning to catch up on my very long list of outstanding research projects. In addition, I am also finding more time to read timely articles, a few of which I would like to pass along to Trader Edge readers. Here is a link to an interesting MarketWatch article titled "Opinion: Why Beijing cannot let its bull market die."
The author (Craig Stephen) highlights a number of extreme steps Beijing has taken recently to prop up Shanghai's free-falling equity shares:
1) Brokerages will invest 15% of their net assets in a new stock-stabilization fund, which will be used to purchase equities,
2) New issues will be suspended, which will funnel more cash into existing issues,
3) The central bank provided a liquidity pledge, and
4) Real Estate (arguably also in a bubble) will now be allowed as collateral for margin loans.
The above steps smack of fear, desperation, and direct market manipulation - not good news for the world's second largest economy.
Print and Kindle Versions of Brian Johnson's 2nd Book are Available on Amazon
Exploiting Earnings Volatility: An Innovative New Approach to Evaluating, Optimizing, and Trading Option Strategies to Profit from Earnings Announcements.
Print and Kindle Versions of Brian Johnson's 1st Book are Available on Amazon (35 5-Star Reviews)
Option Strategy Risk / Return Ratios: A Revolutionary New Approach to Optimizing, Adjusting, and Trading Any Option Income Strategy
Trader Edge Strategy E-Subscription Now Available: 20% ROR
The Trader Edge Asset Allocation Rotational (AAR) Strategy is a conservative, long-only, asset allocation strategy that rotates monthly among five large asset classes. The AAR strategy has generated annual returns of approximately 20% over the combined back and forward test period. Please use the above link to learn more about the AAR strategy.
Brian Johnson
Copyright 2015 - Trading Insights, LLC - All Rights Reserved.
About Brian Johnson
I have been an investment professional for over 30 years. I worked as a fixed income portfolio manager, personally managing over $13 billion in assets for institutional clients. I was also the President of a financial consulting and software development firm, developing artificial intelligence based forecasting and risk management systems for institutional investment managers.
I am now a full-time proprietary trader in options, futures, stocks, and ETFs using both algorithmic and discretionary trading strategies.
In addition to my professional investment experience, I designed and taught courses in financial derivatives for both MBA and undergraduate business programs on a part-time basis for a number of years. I have also written four books on options and derivative strategies.
Desperate Moves in China
Now that my new book has been published, I am beginning to catch up on my very long list of outstanding research projects. In addition, I am also finding more time to read timely articles, a few of which I would like to pass along to Trader Edge readers. Here is a link to an interesting MarketWatch article titled "Opinion: Why Beijing cannot let its bull market die."
The author (Craig Stephen) highlights a number of extreme steps Beijing has taken recently to prop up Shanghai's free-falling equity shares:
1) Brokerages will invest 15% of their net assets in a new stock-stabilization fund, which will be used to purchase equities,
2) New issues will be suspended, which will funnel more cash into existing issues,
3) The central bank provided a liquidity pledge, and
4) Real Estate (arguably also in a bubble) will now be allowed as collateral for margin loans.
The above steps smack of fear, desperation, and direct market manipulation - not good news for the world's second largest economy.
Print and Kindle Versions of Brian Johnson's 2nd Book are Available on Amazon
Exploiting Earnings Volatility: An Innovative New Approach to Evaluating, Optimizing, and Trading Option Strategies to Profit from Earnings Announcements.
Print and Kindle Versions of Brian Johnson's 1st Book are Available on Amazon (35 5-Star Reviews)
Option Strategy Risk / Return Ratios: A Revolutionary New Approach to Optimizing, Adjusting, and Trading Any Option Income Strategy
Trader Edge Strategy E-Subscription Now Available: 20% ROR
The Trader Edge Asset Allocation Rotational (AAR) Strategy is a conservative, long-only, asset allocation strategy that rotates monthly among five large asset classes. The AAR strategy has generated annual returns of approximately 20% over the combined back and forward test period. Please use the above link to learn more about the AAR strategy.
Brian Johnson
Copyright 2015 - Trading Insights, LLC - All Rights Reserved.
About Brian Johnson
I have been an investment professional for over 30 years. I worked as a fixed income portfolio manager, personally managing over $13 billion in assets for institutional clients. I was also the President of a financial consulting and software development firm, developing artificial intelligence based forecasting and risk management systems for institutional investment managers. I am now a full-time proprietary trader in options, futures, stocks, and ETFs using both algorithmic and discretionary trading strategies. In addition to my professional investment experience, I designed and taught courses in financial derivatives for both MBA and undergraduate business programs on a part-time basis for a number of years. I have also written four books on options and derivative strategies.