There is always Gem in any panic or pull back

Everytime there is a panic , there lies a chance or opportunity. Let's see what we can get from this time. Originally I would like to postpone this to Weekend Market Review, but today feel it better to post here right now. Sell-off involves several reasons, one of them will be the psychology of the street guys. the reason can be attributed to the home sale data and greenspan's big mouth.

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New home sales had their best month in recent memory during April, prompting cautious talk that the ailing housing market may have hit bottom. But prices plummeted as builders work off a bloat of unsold homes.

New home sales surged 16.2% in April to an annual rate of 981,000 units, the Commerce Department said Thursday. That was the best monthly gain in 14 years.

Better weather brought wary buyers back to the table, with sales blowing out Wall Street forecasts of 860,000.
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This data fades the view of rate cut by FED within this year. The bond rate also adjust to point to later than Sept ( Last week, the 10 years T-bills rate pointed to rate cut in Sept). Sounds bad? huh, probably. Any dark side comes with a bright one. The home sale increase actually confirms our view that house market is close to bottom if not as we discussed in the post.. Once the house market bottom, what we really need to care will be alumina, lumber, wood and anything that used to build house. I remember bobobobo has given us several stocks related to public building, most of the information already confirmed each other. As a result, let's find those valuable stocks.

USG purchased by Buffet of course is one we like. BLG, CSAR are directly related to house industry. Hope you can share your views of those potential companies in this area. Lumber, wood,...

还有一点值得我们商榷的是一个巧合。那就是greenspan的讲话发生在中美第二次战略会议达成小规模突破的前夜。换句话说，两点，QFII额度由100亿增加到300亿， 另外一点，明年起开始全面开放中国的金融业，允许美国的证券公司，金融公司大举进入中国市场。让我们设想一下，如果股市在QFII额度增加的时候继续高起，对于资本家来说利润大吗？ 我相信资本家是从不作解放军的，绝对不会作解套的工作。在金融资本进入低潮的时候让这些资本进入是否更好？ 让我们重新回顾亚洲金融危机，当年就是Soros在资金进入前大放厥词说亚洲资本有泡沫，导致股市，汇市大跌。他哥们得以安然进入，进而推高市场，获利出套。 那么今天的Greenspan和所谓的香港股神继续唱空中国股市的时间和QFII额度的增加的时间吻合性仅仅是巧合吗？ 中国股市随着市场的走高，风险是肯定有的。但是在我看来，没有泡沫。中国经济持续增长这么多年，老百姓们收益的多吗？没有几个。 这牛市才刚开始，就不断唱空，我是不相信的。中国股市，牛市依旧。今年已经被定性为“ 反恐年”。 什么叫反恐年，就是不要恐高，越高越正常。 Of course, correction during such a trend is not surprise. Today both indexes broke their trend lines which, if confirmed tomorrow, will last about 3 weeks.