July 29 2013 – Ok this is a little late but it is summer and boy the weather has been primo for sailing so my mind is elsewhere. Besides I left you in the right space with my July 20 comment. The market is overheated and taking a breather. If you are in big defensive stocks enjoy your dividends. If you are playing high flyers you should have pulled in your horns last week. Tisk tisk.
Rotation is heading in to the safety end of the market with utilities and big dividend stocks like Johnson and Johnson hitting new highs.
(as always click any graphic to enlarge)
All my indicators form July 20th continue to get softer and it is clear that nobody wants to take this market higher this week with an upcoming FOMC meeting. Here is my famous green arrows chart. It says be cautious, don't open new positions here, but stay long.
TBT pulled back on dovish statements from the fed, the smart money bought that dip, it continues it march higher.
For My Next Trick -- Super Skyscraper in 10 Months
Changsha-based Broad Group held a groundbreaking ceremony for its towering 202-storey “Sky City” development on July 20, sparking a flood of global media coverage. See Video Here. On Tuesday, a story in the local Xiaoxiang Morning Post said local officials had put a stop to construction because Broad hadn't obtained the proper permits.
Dubai’s 828-meter Burj Khalifa is now the world’s tallest building. It took five years to build the Burj Khalifa.
China’s projected 838-meter (2,749 feet) Sky City broke ground in Changsha in central China on July 20, 2013. Astonishingly, the construction company behind it expects to top out in April 2014 – a build time of just 10 months.
Fast construction claims from Broad Group, the Changsha-based construction company in charge of the build, have elicited strong reactions from China’s “netizens,” as well as experts. “The speed is horrifying, how can that be possible?” said one user on Weibo, China’s Twitter-like service. Another criticized the liveability of the homes within, calling the project a “giant stack of trailer homes.”
Professor Moe of Harvard said a skyscraper in the middle of the countryside was a rotten idea from both an urban planning and an ecological standpoint. “Such fantasies have never proved to work and most are utter failures,” he said.
Founded with $3,000 in 1988, Broad had long focused on producing non-electric central air-conditioners. It made its fortune when constant blackouts in the late 1990s boosted the appeal of its products, which are powered by alternative fuels such as natural gas. The company has since become one of the world’s biggest air-conditioner manufacturers. Why do you need a nat gas Air Conditioner? Well if your power grid fails as often as most of China's does there is a market.
However this is not going to end well Broad group has a market cap so small it could not cover the cost of the steel for the first 25 floors. How are they ever going to pull this off?
Well it should be interesting to see a super building built to the same standards as a dollar store flashlight. Don't stand near this thing in a strong wind.