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Wednesday, November 4, 2015

China and Rates - $baba $bac

On the heels of a 6.5% target China GDP, the perception of stability, or the whatever-it-takes attitude, should bring stability and benefit to baba. Looking how well its western counter parts have performed, baba's market cap seems too low. Although it recently rallied hard, and the breakout was highlighted here, its at a little resistance point. But with stability, it will keep rising. 

With a stabile China, and an easing ECB, the Fed is out of excuses to keep rates at these levels. With rising rates, bac will rise. (Stock has been correlating well with the 10yr yields since the litigation concerns have eased.)

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