You may remember PWR from earlier this year ... still think it should go to 32.50.
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Money Market Fund Growth in China
A chart from HSBC, but I don't know how accurate it is ... Yu'e Bao has over 500 billion in assets now from zero last June ... that would take the chart from 400 to 900 ... I'm not sure where the other 500-600 billion is coming from since Yu'e Bao's competitors are relatively small.
Trading idea for Wed. Jul. 9, 2014 | Ensco (ESV)
Hammer is interesting, looks like a long, but will need broad market, or at least energies, at its back.
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Trading idea for Tue. Jul. 8, 2014 | NetApp (NTAP)
Sorry for the lack of ideas in recent days, but I haven't seen much of interest as I scroll through the charts. This one could go down though.
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Moving to T+1 Settlement
From DBS Vickers:
Increasing AUM size is putting pressure on operation costs and redemptions as money market funds usually have to set aside 5-10% of assets as a liquidity reserve to prepare for redemptions. Looking at Yu'e Bao’s better liquidity due to support from Alipay, we assume a 5% reserve ratio to arrive at a liquidity reserve of Rmb25bn while daily average idle funding parked at Alipay is about Rmb30- 40bn. Yu'e Bao may hit the assets under management limit of Rmb1trn in the near term based on our estimates. In view of rising liquidity risks, Yu'e Bao announced in April that it will delay withdrawals of >Rmb50,000 to T+1 settlement if made before 5pm or T+2 settlement if made after 5pm. Other online money market funds such as Tencent’s Li Cai Tong or Baidu’s Baizhuan are also adopting T+1 settlements now.
Heads of State
Angela Merkel is visiting Beijing and traffic was more or less shut down on Chang'an Avenue this afternoon to allow her motorcade to pass. I loved this Beijing cabbie's pose as he waited. He's got it all: the wife beater, the gut, the combover, the omnipresent cigarette ... something timeless about him.
(Click to enlarge)
Movies Watched -- Sound City
Another recording studio documentary, like Muscle Shoals, except Sound City was in California and Joe Gottfried seems to have worked only with white musicians. This one touched more on the technology side of things and how some software called Pro Tools? has changed the whole music business. Apparently people "make" albums on their laptops now and recording studios are obsolete. This one I also fast forwarded after an hour or so in.
Movies Watched -- A Band Called Death
About three brothers in Detroit who formed a band called "Death" in the 1970s. Here's a New York Times article about them: This Band Was Punk Before Punk Was Punk. I wasn't especially interested in this story and fast forwarded it after an hour in. A really fascinating movie about another unknown musician from Detroit was recently made: Searching for Sugarman ... that's one you should watch.
ETF Trading Portfolio Update -- July 4, 2014
No changes this week. Another week like the last in the bonds (TBT) and they will reverse for sure.
Movies Watched -- The Act of Killing
This one was hard to watch and I stopped after 100 minutes (with another hour to go). Movie is about the death squads in Indonesia who murdered around a million "communists" in 1965-66. A lot of those killed were ethnic Chinese. There's a paramilitary organization called Pancasila Youth that still exists, has millions of members, specializes in intimidation, shakedowns (again of Chinese merchants), vote rigging, etc. Weird, I didn't know Indonesia is that screwed up.
The movie tried to mix in these strange performance art pieces, bizarre. Made an uncomfortable viewing experience ("the banality of evil") that much worse. It didn't help that the sidekick of one of the executioners (seen dancing on a former killing ground in screenshot below) looked exactly like Stephen Chow's sidekick in Kung Fu Hustle.