Moody’s Threatens to Downgrade U.S. Credit Rating!

HOCKER: Moody’s Threatens to Downgrade U.S. Credit Rating!

by Mike Larson

Dear Readers, At 9:00 this morning, Moody’s Investor Services announced that if Congress doesn’t get its act together — and soon — it will likely STRIP the U.S. of its sacrosanct “AAA” credit rating! Moody’s #1 worry? Why? Because the official U.S. government debt-to-GDP ratio is now about 103%: About HALF A TRILLION DOLLARS GREATER than the value of all the goods and services our entire economy produces. WORSE: It’s only an eyelash away from where Greece’s debt-to-GDP ratio was when the Euro crisis began! PLUS, Moody’s also expressed concerns about the very same crisis we’ve been warning you about for months — The Fiscal Cliff: Or as Moody’s calls it, the “large, immediate fiscal shock” that is now scheduled to strike the economy on January 1, 2013! Look: It’s no secret that the United States government — and by extension, the economy and the stock market — is in serious trouble. Standard & Poor’s already cut our AAA rating last summer. Moody’s and Fitch avoided doing so, saying that the automatic spending cuts and tax hikes associated with the debt ceiling legislation would likely help stabilize our debt and deficit levels. But instead, things have only gotten WORSE! Washington is on track to run yet ANOTHER $1 trillion-plus annual budget deficit this fiscal year ... Our official national debt load just topped a whopping $16 trillion, and ... We are now staring down the barrel at a mind blowing $222 TRILLION in total government debt and obligations — bills that cannot ... WILL not ... ever be paid! That means the risk of a massive fiscal crisis crashing down on our nation like a ton of bricks is rising fast. How bad could it be? Well, in 2011, the debt ceiling debate and associated ratings crisis drove the Dow Industrials down by 2,000 points in nearly two, short weeks! Plus, risky bond prices got slammed and the entire economy reeled. Now we’re facing a FAR GREATER crisis, and our craven politicians have wasted an entire year doing precisely NOTHING to head it off! If this isn’t a recipe for disaster, I don’t know what is!

NIFTY VIEWS

SORRY FOR LATE POST :-

OK NOW AS WE SAW LAST WEEK NIFTY FROM ITS HIGH OF 5463 WITH JUST 5499 STOP LOSS WE MADE MY TGT OF 5294 NOW GOING FORWARD NIFTY SPOT HAS GIVEN AN CLOSE AT 5258 WHICH IS AN 3 WEEKS LOWEST CLOSING & THERE IS A BIG GAP AFTER 5260 SO HERE IS THE TGT FOR NIFTY PROBABLY FOR THIS WEEK WITH AN SL.5354 TGT IS 5163 .KEEP TIGHT WITH STOP LOSS.

ICICI BANK STEEL LOOKS WEAK FOR 902 TGT VERY SOON .

TATA STEEL WITH AN SL. 349 EXPECT TGT 392 SOON 

TGTS ACHIEVED

JUST 3 TRADING DAYS FROM MY BELOW POST ON 25TH AUGUST & 2DAY 29TH & SEE THE RESULTS :-

NIFTY FROM MY LEVEL :- 5463 TO 5294 = 169X50=8450/-

L&T :- 1429 TO 1353 = 76X250=19000/-

TATA MOTORS :- 245 TO 235 =10X1000=10000/-

STER FROM 212 TO 99 = 13X2000=26000/-

ONGC FROM 288 TO 274 = 14X1000= 14000/- 

TOTAL PROFITS WITH JUST 1 LOT MAKES IT 77450/- ENJOY

FOR MORE SUCH CALLS CALL AT 9830534577

SHORT TERM CALLS EFFECTIVE FROM 24 AUGUST

AS OF NIFTY SPOT 5463 IS THE HIGHEST NIFTY WILL /MIGHT GO BECAUSE ABOVE THIS THERE IS BLACK CROW FORMAT AT 5499 WHICH LOOKS WONT BREAK 5294 LOOKS IMMEDIATE TARGET.

SHORT L&T WITH SL. 1490 TGT 1353 CMP 1429

SHORT TATA MOTORS SL. 258 TGT 216 206 CMP 245

SHORT ONGC SL.293 TGT 272 CMP 287.70

SHORT STER SL.118 TGT 101/95.5 CMP 112.20

SHORT HDFC BANK SL. 612 TGT 577 563 CMP 595

TATA STEEL HAS A STRONG SUPPORT AT 384 KEEP CLOSE WATCH ABOVE THIS TGT 410

a real view of china

A View of the 'Real China' from Beijing's Wangfujing Street

I just returned from an 18-day Asian treasure hunt, this time taking a close look at what's really happening in China from inside the heart of Beijing.

I love these research trips because I get to see new, fascinating parts of the world, meet interesting people and, most importantly, discover incredible investment opportunities that the Wall Street crowd has never heard of.

I've been on many trips. And EVERY one of them has yielded at least one investment home run.

Largest bubble in history set
to explode ... what next?

Washington and Wall Street have recklessly pushed the United States into the greatest financial bubble in American history. And we are far beyond the point of no return. This bubble WILL burst — just like every other one before it. But you don't have to be caught unaware!

In this shocking video you'll see how this bursting bubble will reduce millions to poverty and spell the end of our way of life. But more importantly you'll learn how one small action today can protect you ... and help you profit! View it here, right now, for FREE!
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My last trip, for example, was to Cambodia for the 21st annual Association of Southeast Asian Nations (ASEAN) Economic Summit.

As a result of that trip, I found a virtually unknown but wildly profitable Cambodian company (that trades in the United States, by the way) that I recommended to my subscribers at around 45 cents. That stock zoomed to 57 cents in just 90 days ... which was more than a 25% gain, on top of the juicy 8% dividend it pays!

Like all my previous research trips, I uncovered some of the most exciting investment opportunities I've ever seen in my life.

Beijing Gives China's Banks the
Green Light to Dump Dollars!

China's central bank has always been able to sell dollars ... Until NOW ...
For the first time, every commercial Chinese bank has been given official approval to DUMP and even SHORT the U.S. dollar!

What does this mean for U.S. dollar holders (you)? One word: CATASTROPHE. The conspiracy between Obama and China is deeper than you ever imagined. Here's what to do IMMEDIATELY to prepare.
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I had dozens of meetings with corporate, academic, technology and government leaders. And while those meetings are an important part of my research, I find that I learn just as much, if not more, from talking to waiters, concierges, taxi drivers, university students, cashiers, and just about anybody who is willing to answer my nosy questions.
Wangfujing Street aims to rival New York's Fifth Avenue, the Champs-Elysees of Paris and the Ginza in Tokyo.
Wangfujing Street aims to rival New York's Fifth Avenue, the Champs-Elysees of Paris and the Ginza in Tokyo.

But you can also learn a lot by just keeping your eyes and ears open. To give you an idea, let me take you on a walk down Wangfujing Street in Beijing ...

Wangfujing is the main commercial retail street in Beijing. It's packed with tourists and affluent Chuppies, or Chinese yuppies, seven days a week.

It's a 700-year-old commercial boulevard near the Forbidden City. It has two major shopping malls, several large department stores, and hundreds of shops ... including dozens of western businesses.

Let's Take a Stroll Together

I need some cash, so I head to China Construction Bank (CICHY), which is the second-largest bank in the world. If lines of customers are any indication of business health, then China Construction Bank is very healthy.

Then I need a jolt of caffeine so I head over to Starbucks (SBUX), which are found all over China. I walk into the Wangfujing Starbucks but there isn't a seat to be found. And not just in the morning, either!

Starbucks has become one of the most-popular places for young Chinese couples to go for dates in the evening. Starbucks may be stumbling in the U.S., but business is BOOMING in China. In fact, the most recent quarter showed that same-store sales continue to grow by double-digits.

Let's move along to our next destination.

There is a Chinese saying: "A trip to Beijing is not complete if you miss seeing the Great Wall or dining on Peking duck."
KFC's parent, Yum Brands! (YUM), is opening a new KFC in China every 18 hours ... on top of the 3,500 already there!
KFC's parent, Yum Brands! (YUM), is opening a new KFC in China every 18 hours ... on top of the 3,500 already there!

I don't have time for a sit-down dinner so I head into a Kentucky Fried Chicken restaurant that is absolutely packed with customers for an Old Beijing Twister — a wrap modeled after the way Peking duck is served, but with fried chicken, spring onions and hoisin sauce.

I stick out like a sore thumb when I'm in China. I'd like to think it is my camera hanging around my neck that gives me away as a tourist, but the truth is that I'm just too darn fat to be mistaken for a local.

That's OK because the Chinese are very friendly people who love to practice their English on willing Americans.

Where do they learn English? For most, the answer is New Oriental Education (EDU), the largest English-language school in China. New Oriental recently took a big hit to its shares as it announced that the SEC is investigating it. But earlier this year, my subscribers took up to a 200%-plus gain in the stock.

And what are people wearing as they walk around Wangfujing Street?

The famous Nike (NKE) swoosh is plastered everywhere in China. And the Nike store on Wangfujing Street is one of the busiest in the world. Nikes are considered to be very fashionable here. And the number of Chinese feet with Nike shoes on them is staggering.

Speaking of fashion, I can't believe the number of Louis Vuitton (LVMUY) bags that Chinese women are toting around.

I suspect many of them are knockoffs. But my eyeball-estimate is that one out of every four or five Chinese women is clutching a Louis Vuitton handbag. Coach (COH), by the way, would come in second.
Apple stores in China, like the one behind me, are always packed.
Apple stores in China, like the one behind me, are always packed.

Growth always brings changes, most positive but some negative. And one of the most-irritating new trends I've noticed this trip is that lots of Chinese youths are so busy looking at their smartphones that they walk right into you. Overwhelmingly, the smartphones they are so engrossed in are iPhones from Apple (AAPL).

Back to our tour ...

Beijing in August is extremely hot and humid, so I duck into an air-conditioned Marriott hotel to cool off. Marriott (MAR) has committed to opening at least one new hotel in China every month for the next three years and is benefiting from the booming travel business in China. A purer China hotel play is Home Inns & Hotels Management (HMIN), the Howard Johnson of China.

One of the Chinese taxi drivers that I meet during my trip gives me a friendly but serious lecture that American companies are making Chinese women fat!

I agree that the Chinese are fatter today than they were when I first started traveling to Asia. But that is what happens when you start eating McDonald's (MCD) french fries and drinking soda pop from Coca-Cola (KO).

The sightseeing is enlightening and encouraging, with one small drawback ... which is that I've developed a persistent, ugly little cough that started shortly after I landed.

The air pollution in Beijing is as bad as I've ever seen it. And the Chinese government needs to do "something" because the health and social consequences from long-term exposure to this much pollution has got to be dire.

Whoever helps China clean up that air pollution is going to make a ton of money. That someone could be Fuel Tech (FTEK), which has been working to expand its scrubbing technology for coal-fueled electrical plants into China.

After a long, long day, I need a cocktail so I drop in on a Wangfujing watering hole. The place is plastered with signs for Johnnie Walker Red, which is the No. 1 foreign liquor sold in China.

Diageo (DEO), which makes Johnnie Walker, has seen its scotch sales increase by 50% over the last five years largely from its soaring Asia sales.

In fact, my subscribers just got stopped out of Diageo with a 20% return in Diageo late last week.

That's just one of many examples that the domestic-consumption side of the Chinese economy is still strong and thriving. It also shows us that some of the most-profitable ways to play Asia come from companies based in the USA and other parts of the Western world.

Although China's economy may be slowing down, keep in mind that it's still growing ... and doing so at a pace that developed nations simply can't match. And the opportunities to profit are closer to home than you might think!

Best wishes,

krunal

NIFTY THIS WEAK 13-17 AUGUST 2012

IF NIFTY DOESNT BREAK & TRADE ABOVE 5368 THEN WE CAN SEE 5260 MAY BE THIS WEAK ONLY.

NIFTY SHORT TERM

AS PER THE ABOVE CHART ATTACHED & INDICATED NIFTY SPOT AT MAX CAN SEE OR I CAN TERM IT AS WILL SEE 5378-5380 HIGH , BUT TO BE CAUTIOUS IS WHAT THIS POST HAS BEEN POSTED , DONT BE OVER BULLISH AS WE WILL BE BUILDING OUR SHORT POSITIONS FROM 2DAY ONWARDS AT 5370 WITH KEEPING SL OF JUST 20 POINTS MORE I.E 5400 (SPOT) FOR VERY SHORT TERM 1ST TGT 5130 5035 & LAST DESTINATION 4835. THIS TIME 4835 LOOKS VERY EASILY TO BE ACHIEVABLE.BEST OF LUCK FOR YOUR TRADES.

ANY FURTHER QUERY :- CALL AT 9830534577 

nifty intraday

RISK LOVERS :- SHORT NIFTY 5247 SL. 5265 TGT 5226 5218 5197 5169

NIFTY VIEWS

AS SHOWN ABOVE IN FIGURE 2DAYS MOVE WAS TO FILL GAP OF 20TH JULY GAP & STILL 5238 IS EXPECTED TO ACHIEVE , ON AN EXTREME CASES WE MIGHT ALSO SEE 5267 ,BUT OVERALL DONT GET BULLISH COZ THIS UP MOVE WILL GIVE YOU CHANCE TO GO SHORT FOR MY TGT 4832 WITH SL.5332 .

FOR MORE SUCH CALLS GET IN TOUCH AT :- 9830534577

218 POINT IN JUST 22 DAYS

AS SUGGESTED ON JULY 3 AT 5311 LEVELS TO SHORT NIFTY WITH 5423 FOR TGT 5093 .....WE HAVE ACHIEVED THE SAME 2DAY GIVING AN HANDSOME RETURN OF 218 POINT IN JUST 22 DAYS .I.E IF YOU TRADED WITH JUST 1 LOT IN NIFTY U GAINED 10,900 /-

BELOW IS THE LINK OF MY JULY 3 POST :-
http://krunalshah2004.blogspot.in/2012/07/nifty-short-term-view.html