China Raises Rates

This should have a significant impact on stock trading portfolios. Granted, the markets have had time to consider this move, as it has been potentially coming for about a month now, but it's here - and the stock market is over sold - so conditions are ripe for a sell off.

As an fyi, if you want a free version of Reminiscences of a Stock Operator - a must read for every trader, click here.

As for the markets, overseas markets have taken a hit, with China closing down about 2% and European markets down 1.5%. This overnight trend generally will translate into our markets as volume returns.

And how the stock, bond and dollar markets close today will be very critical to our outlook. As you know, we've been calling for a sell off, but waiting for a catalyst. And given the time of year, this catalyst may get delayed into the new year. We'll monitor the markets committment to selling as the markets open up.

If you'd like to join us in our chat room, it's free for the rest of this week. But to get there, you need a PalTalk account and some software downloaded to your computer. You can get it by clicking here.

I hope you all had a Merry Christmas and happy holiday season. As 2011 sets upon us, we're working on our forecast for the new year. I still see one large move coming in Q2, and that's about it for the year.

Regards,

Jay DeVincentis