The Dragon Rises and the Whole World Catches its Tail

The RMB has finally rose to its highest percentage gain since october 2008. A 21 month high. The Chinese government finally decided to unpegged its yuan to the dollar after much pressure from major world leaders. What could this mean to most people?

Commodities to rise. As it is now, China is the world no.1 producer and consumer of commodities, the rise in the yuan signals a rise in commodities as there were pre contracts made to deliver them at the stagnant price before yesterday change to the RMB. As a result, many companies holding a passive income from china at a fix price sees the gain in currency as a gain in their cash flow. At the same time, the same amount of RMB will be used to purchase the commodities which makes the commodities rises at the same time in congruence to the RMB

Shipping Stocks. Time charter is the word. Any ship owners with business in China chartering out their fleets at RMB at a given time will see their stocks soaring. Companies such as Cosco and NOL and major shipping suppliers must be kept on the look out. It is the best time now for them to be purchased.

US stocks. The Major indices in USA will soar today at least to a 2% high, with the Americans finally getting their way. I don't see a reason for them to stop climbing, i predict dow jones should hit 12k anytime before this year.

China stocks. A rise in the currency signals a flexible stance that the government has adopt. One way is to curb inflation and another way is to untighten its money and prevent a bubble. Most china stocks will rise because they are the world biggest holder of RMB. So UETFSSE 50 anyone?

GOLD WILL HIT ANOTHER RECORD HIGH !

Ive been urging everyone to buy gold, buy gold. EVER SINCE 2009, ive followed the advice of Peter Schiff and ive passed on that advice (effortlessly though) and hoping for people to reap easy profit for free! Many of cause do not understand why and thought that the price of GOLD since already hit an all time high on 18th June (YET AGAIN) there's no reason to get in anymore. However, those whom have been following the price of gold has realised that GOLD HAS SURGED PROFUSELY TO AN ALL TIME HIGH 5 times in less than a year. THATS definitely not a sign for us to back out. Thats a sign for us to get in as this little shiny metal here has been breaking resistance bit by bit and its not gonna stop so soon. The only time you should get out of gold is when you really need the money or you see a sudden surge more than 10% that is when you should get out and wait for the price to fall before you get in. It is sure to be higher than the previous high once again.

So what are you all waiting for? BUY GOLD

Price pass 200 days EMA.

The index of STI has went up a consecutive 6 days after an expected correction since the end of April. Many prices have hit 200 days Moving Average and looks set to be volatile for days to come. Gold price has hit record high again but went down as usual when the Euro came up against the dollar. The market seems to be much stable now compared to 2 weeks ago and many investors are jumping in to ride the trend together with a wave of good news.

There are a few things to look out for in the remaining weeks. The situation of the BP oil spill, the unemployment rate in America and Europe. This three issue will affect the market as long as companies have not announced their quarterly result.

Hold your shares. Expect an uptrend to come for a few months.