Helicopter Ben
Federal Reserve Chairman Ben Bernanke, whose academic research when he was a professor of economies at Princeton was on Japan’s recessionary woes, in his now infamous speech in 2002, talked about dropping money from helicopters if need be to prevent an economic downturn such as the one Japan experienced. He revealed how far the Fed is prepared to go to prevent deflation. His solution is to keep throwing more and more currency, NOT money, at the problem. Isn’t that what he is doing right now?? Printing SO MUCH U.S. dollars to get U.S. out of the BIG MESS that it is in?!! This continuous devaluing of the greenback will in turn drive up the prices of gold, silver and other U.S. dollar-denominated commodities.
Global Market Outlook For Week Beginning 9th November 2009
Straits Times Index(STI) was well supported at the 2600 level, indicated by the uptrend line drawn. It should be retesting the stubborn 2746 resistance level after piercing through the 2700 once again. If 2746 can be broken successfully, the forward momentum should bring STI towards the 3000 mark before the end of the year.
After breaking out from the 2600-3000 consolidation range, Shanghai Stock Exchange(SSE) is now trading within the uptrend channel shown. Technically, it should be testing the 3478 ceiling, based on the upside target projection. Now, SSE is the leading indicator for global stock markets, taking over the leadership baton from the U.S. market.
Hang Seng Index(HSI) will soon be testing the 22,620 resistance level, attained on 23th October. If this barrier can be penetrated with the help of positive move from SSE, HSI will have the potential to reach the 23,368 level before the close of 2009.
Jakarta Composite Index(JCI) fell off the cliff and experienced a 13% decline within 2 trading weeks. The 2271 support level succeeded in cushioning the drop and JCI has since rebounded from that level. If it can push through the 2259 resistance level, the next ceiling for JCI will be the 2774 region. But if it fails to do so, there lies the danger of the formation of a Head-and-Shoulders chart pattern. If the 2271 were to be penetrated later on, JCI can be expected to experience further weakness.
Bombay Stock Exchange(BSE) SENSEX is also one of the best performing market in Asia, together with SSE, HSI and JCI, after registering a whopping 117% rally from the early March low!! After hitting the high of 17,493 region on 17th October, it plummeted 14% before it found some footing at the 15,600 support level. If it has the strength to break the ceiling of 17,493 level, the next overhead resistance will be at the 17,736 mark. 15,600 will provide the necessary underlying support, but if it were to be broken, we may see SENSEX decline to the 14,700 region.
Kuala Lumpur Composite Index(KLCI) seems to be enjoying a pretty good bull rally, bouncing along the uptrend line obediently. If it continues to perform accordingly, its next 2 resistance levels will be at 1276 and 1305 respectively. 1231 should act as a good support level to prevent any further decline.
S&P 500 rebounded from the 1019 support region, staged a powerful run-up and is now preparing to test the 21st October high of 1101. The next target for S&P 500 will be 1168 if it can penetrate this 1101 level successfully.
If NASDAQ can punch through the 2190 resistance level, it will complete a Double Bottom chart pattern, which will propel it to hit the next target of 2318. At this point of time, 2040 looks like a good support for NASDAQ to repel any further weakness.
Dow Jones has remarkably penetrated the 10,000 full number mark! But the worrying thing is that this was achieved with declining volume, as illustrated by the volume bars at the bottom of the chart. This shows a lack of institutional buying. Technically, it has the potential to hit 10,683 objective while its downside will be supported at the 9,630 level.
Will there be a Christmas Rally this year?? I definitely hope so! Let’s all party and enjoy while the going is good. Some green shoots are slowly turning into yellow weeds, eg. U.S. unemployment rate in October was a staggering 10.2%, 120th bank have been closed down since the start of 2009 in U.S….etc. Will 2010 Tiger Year turn out to be a good year for the global stock markets? Personally, I doubt so. Nevertheless, let’s all enjoy this rally as much as possible before more ugly events start to appear next year.
Cheers 
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
1 Person Has Something To Say Add Your Comments Too!Foreigners Accounted For 22.7% of Singapore Private Home Sales in 3rd Quarter 2009
Foreign buyers are streaming back into Singapore private home market. They accounted for 22.7% of private home sale in 3rd Quarter 2009 – above the 19.7% average since the start of 2000.
Chinese buyers have dislodged those from India for the No. 3 spot in the rankings this year with a contribution of nearly 15% of the total foreign purchasers. This puts China just behind Indonesia in the 2nd spot and Malaysia at No. 1. In the past 2 years, India had been in the 3rd spot, but it has slipped to 4th placing.
About 54% of the purchases by China buyers were for resale homes. Like Malaysian buyers, they tend to prefer homes priced between $500,000 and $1million. one-fifth of them bought homes costing $1.5million to as much as $5million.
Indonesians tended to go for higher priced projects, particularly those priced $1.5million to $5million. They like properties located at Novena, River Valley and the Singapore River.
Recent data showed that foreigners who are not permanent residents tend to buy more pricey projects. The most popular project sought by foreigners was Sophia Residence, a project launched in July. Then came Caribbean at Keppel Bay, Ascentia Sky, One Devonshire and Viva.
Source: URA and Savills Research & Consultancy
Do You Have Something To Say? Add Your Comments Here!I.O.U.S.A. – One Nation. Under Stress. In DEBT.
U.S. IS IN VERY VERY SERIOUS DEBT PROBLEM!!! It has 4 serious deficits, namely: Budget, Saving, Trade and Leadership Deficits. Take a look at the 30 minute documentary below and you will understand why the days of U.S. been the world’s most powerful economic nation are numbered and we are seeing the giant slowly bleeding to death right in front of our eyes…………
Do You Have Something To Say? Add Your Comments Here!Frank Holmes: Gold May Hit US$2,300 In the Long Term
Frank Holmes, CEO of U.S. Global Investors, said that Gold may go up to US$2,300 in the long term. We should always view Gold and Silver as a hedge against inflation and preservation of our wealth, rather than wanting to make big bucks out of them.
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
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