U.S. stocks erased a week’s worth of losses, surging after Federal Reserve Chairman Ben Bernanke signaled the central bank is committed to a policy that’s helped stocks rally for three years.

The Dow Jones Industrial Average rose 160.90 points, or 1.2%, to 13,241.63, gathering momentum throughout the day to more than recoup its 152-point loss, or 1.2%, last week — its worst week of the year.

Done deal, finally! But Greece is not going to be the same again, with all those austerity measures it might just be a half-dead patient for many years.
 
--------------------------------------------------------------------------------------------------------------------------

BRUSSELS, Feb 21 (Reuters) - Euro zone finance ministers approved on Tuesday a second bailout for debt-laden Greece that will resolve Athens' immediate repayment needs but seems unlikely to revive the nation's shattered economy.

 After a marathon 12 hours of talks through the night, euro zone officials said ministers had agreed measures to cut Greece's debt to around 121 percent of gross domestic product by  2020,  close to their original target of 120, after negotiators for private bondholders offered to accept a bigger loss to help plug the funding gap.

Agreement on a 130-billion-euro rescue package with strict conditions attached will   help draw a line under months of uncertainty that has shaken the currency bloc, and avert an imminent bankruptcy.
 
 "The financial volume (of the Greek package) is 130 billion euros and debt-to-GDP (will be) 121 percent. Now it's down to work on the statement," one official involved in the negotiations told Reuters. Another confirmed the two figures.

Here comes another potential disruptor: The Iran oil cutoff being a cause for spike in  oil prices

As at the close of trading on 17 Feb 2012, the STI looks quite certain to form a Golden Cross over the next few trading days.

Below is a definition of the Golden Cross -

“The Golden Cross represents a major shift from the bears to the bulls. It triggers when the 50-day average breaks above the 200-day average. Conversely, the Death Cross restores bear power when the 50-day falls back beneath the 200-day. The 200-day average becomes major resistance after the 50-day average drops below it, and major support after breaking above it. When price gets trapped between the 50-day and 200-day averages, it can whipsaw repeatedly between their price extremes. This pinball action marks a zone of opportunity for swing trades.” –

From:  http://www.tradingday.com/c/tatuto/movingaveragecrossovers.html

Loud cars and loud lifestyles are often the key reason for the downfall of people who made illicit money. Look at the Singapore Land Authority guy’s case. It’s the same in Italy – read how they catch tax evaders.


Bloomberg ----  Police fanned out across Milan in late January halting more than 350 vehicles, mostly luxury SUVs and Porsches.

At checkpoints, including one adjacent to the fashionable Corso Como, the police got the driver’s license and registration, which they passed on to the national tax agency. The tax authorities will use the data to check if the cars’ owners had declared enough income -- and of course paid the right amount of income taxes -- to justify their lifestyles.

It was at least the fifth raid targeting wealthy Italians since a Dec. 30 sweep at the posh Cortina d’Ampezzo ski resort, where 251 high-end cars were stopped, including Ferrari and Lamborghini supercars, Bloomberg Businessweek reports in its Feb. 13 issue. Rome, Portofino on the Italian Riviera and Florence have also been targeted.

“I’ve been stopped three times in the last few weeks by authorities because I’m driving a luxury SUV,” says Andrea, a Range Rover owner and entrepreneur in Italy's wealthy northeast. “It seems like the McCarthy era in America. You’re guilty by suspicion.”

The 43-year-old, who declined to give his last name for fear of attracting the attention of Italy’s tax agency, now plans to sell the SUV he bought last May. He expects to get at most 40,000 euros ($52,400) for a car that cost him more than 100,000 euros. “Dealers are full of luxury cars. No one wants to buy them now,” the businessman said.

Super Mario is gonna unleash a bigger backdoor bazooka end this mth and the new EU ageement is expected to be signed in Mar which could lead to Eurobonds later. With improving US economy, the 1Q2012 results in April should be okay hence the market is safe at least until then , with minor corrections along the way. Stick to stocks with low PE /strong fundamentals and enjoy the ride. 

http://online.wsj.com/article/SB10001424052970203824904577212763546615878.html?mod=googlenews_wsj

Just now, I slurped my fishball noodle soup at Tampines. Very tasty -- like the stocks I like.
Hope you all huat ah!

Minzhong now $1.09.

Sino Grandness: 48 c.

Utd Enviro -- er, where are you ? Still zzzzzzzzzzzz.?

Fully agreed Yeh, 

I am very bullish on China Minzhong and Sino Grandness in the long run. 

In fact if you look at Sino Grandness's price performance since its listing in late 2009, it has easily outperformed to the vast majority of s-chips due to its impressive fundamentals, soaring profits and growth potential. 

I too am interested in seeing the effect that all the money that will no longer be flowing into property speculation in the medium term will have on the stock market. This applies to both Singapore and China. 

Also, Chinese stocks have been in a bear market ever since the peak in 2007 where most people seem to have forgotten that the Shanghai Composite actually hit as high as close to 6k (currently only 2.3k) while the FT ST China Index exceeded 1k (currently merely just over 250). Record highs in indexes will eventually be broken one day in future and I believe that when the next bull market in Chinese stocks occurs, the likes of China Minzhong and Sino Grandness could become real multi-baggers. 

The stock market is rocketing up and I observe the following:

1. Investors are getting more daring (less risk averse) and very sure they can make money.

2. House dealers and remisiers are moving lots of stock -- lots of rotational play. They are the ones making the cream of the profits currently.

3. It's the S-chips that are gaining double digit % gains a day. Shows that sentiment can be a powerful force.

4. Many retail investors have yet to fully cheong into the market.

5. What I am curious about is : how much of the tidal wave of money from property speculators will find its way into SG stsocks.

Lastly, a short commercial: Good stocks like United Envirotech (38 cents), Sino Grandness (45.5 cents) & China Minzhong ($1.01) have not yet stepped on the accelerator for their full potential.

Dear MacGyver, 

thank you for your valuables and accurate tips and comments .

by the way, how you train yoursef to become a guru ?

by  a sincere follower.

csltay8033: thank u. Can u share what stocks you like currently?

U guys (mac, greenrookie, james) are serious? U must be nuts! There is still so much value in the market and you say bye bye? I am looking at 50% gain on a portfolio basis!

Dear Forummers,

I counted my lucky stars about the recent market rally. The comments that I made on 25 and 26 December still stand. 2012 may turn out to be a really good equity market year.

Having said that, I have decided to take profit on the recent rally. My portfolio which comprises of blue chips, s-chips and micro-cap stocks have hit my target returns of more than 25% returns.

Profit made during these 40 days of 2012 will allow me to pay for a small apartment in the east side of Singapore and collect some nice rental income.

Good luck and make sure you do your homework before you take on Mr Market.