LYC 1.30% $7.61 lynas rare earths limited

Win WIn Situation, page-168

  1. 1,247 Posts.
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    Hi JFI,
    Just before I start my holiday, I would like to share my thoughts and opinions.
    Last night the retail sales figures were very impressive , but the market responded in a negative way .
    The reason is:  

    Reserve may raise interest rates sooner than estimated as the economy shows signs of improving
    MY OPINION ABOUT THE MARKET MANIPULATION
    GIVE US A BREAK
    THE DOW IS HIGH AROUND 17000 AND TIME FOR SLIGHT CORRECTION BEFORE    ANOTHER NEW HIGH Again using the headline of increase interest rate to justify the sell off when it suits.



    The 0.6 percent increase in purchases was the biggest in four months and followed a 0.3 percent rise in July, according to Commerce Department figures issued today in Washington
    http://www.bloomberg.com/news/2014-...creased-in-august-by-most-in-four-months.html

    Under normal circumstances, this piece of news will ignite the retail stocks and the share market because 70% of USA economy relies on consumer consumption.

    Now , let us have a look at our signals from yesterday:
    QBE in the green from strong dollars ( strong data boosts the bet about increase in interest rate sooner than later
    RIO and BHP -AU, AWC were in the green (evidence of strong economy boosts cooper consumption and aluminium).
    Lynas (black and intraday was red)
    JBH slight green where as WES,WOW,TRES slight red after being in the green in early trades, MYR was also in the red.

    Looking at QBE, JBH retailer, RIO, BHP,AWC in the green does make sense
    LYC in the black(intraday in the red) does make sense to me at least when the DOW in the red.
    So why other retailers WES The market is unpredictable, between responding to positive news or a sell off because of the current high valuation and the high DOW of around 17000. If the DOW was around 15000 with this kind of positive news, we would have seen strong reaction.

    My point is, the market condition is not right for the positive news to come out from Lynas.
    It is better for the news to come out when the market condition is good, so the reaction can be positive, rather than an initial reaction followed by a sell off.

    I am hoping when I come back from my holiday, the news would have come out with lots of happy faces on the forum.

    Good Luck  and have a nice weekend.
 
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