Zak Mir and Mike Ingram were joined by Paul Rodriguez, Director at ThinkTrading.com, on the Tip TV Finance show to discuss the FTSE 100, Apple (NASDAQ:AAPL) and the credit crunch 2.0.
FTSE 100 could see proper downside after 6000
Rodriguez commented that the FTSE 100 has been going sideways despite the UK releasing positive data in terms of low interest rates. He noted that in the short term, the FTSE could see a move down to 6000, and if it breaks that, it could see some proper downside.
Apple watch resulting in a fall?
Rodriguez highlighted how the Apple watch has largely been a failure and that whilst Apple have ventured into other developments, other companies have been pushing their mobile devices to compete with the IPhone. He moved to the chart, and outlined a fall to $100 is likely after reaching a top at around the $120 level. Rodriguez finished by expressing that Apple could trade a range for a while, but overall demand is weak and will remain weak.
Prospects for Credit Crunch 2.0 bigger than the first
Rodriguez noted throughout the segment on certain headlines such as the devaluation in China, the general use of Quantitative Easing and the decrease in commodity prices. He noted Copper to be the true indicator of the global economy, and that it is currently accelerating in a downward trend. Mir added that the situation in China will delay a Fed rate hike in the US, and he believed that even without the Chinese situation, the Fed would have backed down themselves. This led to his conclusion that more and more signals are supporting the fact that a second credit crunch is likely to occur towards 2016/2017, and also likely to be stronger than the first.