China's PBOC Says The Correction Is Over!

While I am less than 100% confident in the exact translation, PBOC Governor Zhou Ziaochuan said the following to G20 finance ministers this past weekend in Turkey:

“At present, the exchange rate of the Renminbi against the Dollar is stabilizing, the correction in the stock market is already mostly over and the financial markets show hope for stabilizing.” Zhou added “Following the correction, levels of leverage are clearly lower and there has been no notable effect on the real economy.”

As incredible as it may sound, I ACTUALLY BELIEVE MR. ZHOU and the People's Bank Of China, at least for the short term !! Does the PBOC have the financial wherewithal and necessary willpower to backup these reassuring remarks with any and all necessary market interventions to make it so? Probably!!

More importantly, my computer-based trading program believes Mr. Zhou as well, which is all I need right now to suggest the unthinkable. I now believe that the U.S. stock market correction is over and commodity prices have bottomed!

If the U.S. stock market correction is over, can most major indices rally back to new all-time highs before year-end 2015? I think maybe yes! 

Investor sentiment has dramatically shifted (to bearish) and even the financial media is printing "end of the world" headlines now. If you believe in contrary indicators, as I do, then all this negative talk is bullish for stocks and also for commodity prices. To me, even crude oil prices look ready for a sustained advance!

In the interest of full disclosure, I have major long positions now in mining stocks including FCX and a well diversified package of precious metals mining shares in all my managed accounts. And I also have a relatively major position in the S&P 500 Index in one of my managed accounts.

The following weekly charts have been provided with all trading signals reflected from my computer-based trading system. And if a picture is worth a 1,000 words, then these charts speak for themselves:

1. S&P 500 Index Weekly Chart (SPX)

2. Russell 2000 Weekly Chart (RUT)

3. Freeport McMoran Weekly Chart (symbol FCX)

4. U.S. Steel Weekly Chart (symbol X)

5. Oil Service Stocks ETF (symbol OIH)

6. Major Integrated Oil Index (symbol XOI)

S&P 500 Index Weekly Chart with 150-Week MA & All Computer-based Trading Signals

Russell 2000 Index Weekly Chart with 150-Week MA & All Computer-based Trading Signals

Freeport McMoran (symbol FCX) Weekly Chart with All Computer-based Trading Signals

U.S. Steel (symbol X) Weekly Chart with All Computer-based Trading Signals

Oil Services ETF (symbol OIH) Weekly Chart with All Computer-based Trading Signals

Major Integrated Oil Stocks Index (symbol XOI) Weekly Chart with All Computer-based Trading Signals