Juggling Dynamite

At the end of September, we noted that the Canadian Venture Composite was testing upside resistance in the 1330 area and a failure there could suggest further weakness, as the global economy slowed. In today’s update we can see that now at 1209 that overhead resistance did in fact prove impenetrable, with potential downside support next in the 1150 range. If that also gives way, the Canadian Venture Index may follow the lead of the Shanghai Composite and revisit its previous cycle low from late 2008, as shown below. This is will be hard on those who have remained bullish and invested in this sector since 2006-07, but it is also quite typical of a secular bear to have stock indices retest prior cycle lows.

Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.

He has been touted as the best man for the job, but what exactly can Mark Carney expect when he takes on the role of governor at the Bank of England next year? DeAnne Julius, former MPC member, and Chris Giles, economics editor, lay out some of the challenges. Here is a direct link.

And see this clip for an update on the UK fiscal situtation and why they have decided to hire Goldman alumnus Mr. Carney as a high-priced prestidigitator to lead their central bank.

Global mis-selling scandals, from mortgages in the US to pensions in the UK, have cost the financial industry billions. The FT’s Elaine Moore reports on new rules in the UK that should clean up the way financial products are sold. Here is a direct link.