All posts and charts are for educational and illustration purposes only
Wednesday, July 20, 2016
Tuesday, July 19, 2016
Market Awaits Draghi, Yellen and Kuroda`s Monetary Policies
The stock market is once again rallying on expectation of monetary stimulus from ECB president Draghi on 21 July (Thursday) and hyped-up speculation that BOJ Kuroda will resort to using what's called "helicopter money" , a convergence of unconventional monetary policy and fiscal policy , the monetisation of infrastructure stimulus that will likely take the form of big spending package at the next Bank of Japan policy meeting scheduled for 28-29 July.Ben Bernake has been in Tokyo 2 weeks ago and reportedly had lunch with Kuroda, followed by a meeting with Abe. These meetings has created much speculation of another `Bazooka` monetary stimulus in the offing.
Fed FOMC meeting scheduled from 26 – 27 July is not expected to raised interest rate, Yellen interest rates guidance into the next 6 months could turn the tide.
With this backdrop, the market is not expected to experience a steep correction until all the central bankers have their say. After the July month end, traders should be ready for a sharp correction in August.
Like the BREXT all over again its going to be `Sell On News’ with so much priced into the expectation of Central Bankers monetary stimulus this month.
Fed FOMC meeting scheduled from 26 – 27 July is not expected to raised interest rate, Yellen interest rates guidance into the next 6 months could turn the tide.
With this backdrop, the market is not expected to experience a steep correction until all the central bankers have their say. After the July month end, traders should be ready for a sharp correction in August.
Like the BREXT all over again its going to be `Sell On News’ with so much priced into the expectation of Central Bankers monetary stimulus this month.
All posts and charts are for educational and illustration purposes only
Friday, July 15, 2016
Thursday, July 14, 2016
Keppel Corp 2Q Result due on 21st July could surprise on the downside !
All posts and charts are for educational and illustration purposes only
Tuesday, July 12, 2016
Quotable Quotes
“Investing is a popularity contest, and the most dangerous thing is to buy something at the peak of its popularity.” - Howard Marks
All posts and charts are for educational and illustration purposes only
Friday, July 8, 2016
Tuesday, July 5, 2016
Thursday, June 30, 2016
Wednesday, June 29, 2016
Friday, June 24, 2016
BREXIT - RISK OF FINANCIAL CONTAGION
The polls and the bookies were all wrong. The UK has voted to leave the European Union with a strong mandate. The markets trusted the polls and the bookie and had betted on Bremain. As a result the unwinding of the wrong bets will cause volatility in currency markets . Going forward the sterling and euro will be weak and neither the Bank of England or the ECB is expected to support the currencies because weak currency monetary policies are exactly what they wanted to stay competitive in global trades.
The real risk from Brexit is the financial contagion and not the economy that analyst had forecast will suffer. UK is only the world's fifth largest economy, and impact from its downturn will not affect the world.
The real risk could be the persistent weakness of Euro that will affect Asian trade. A weak Euro may push CNY to depreciate further fueling the contagion effect of a currency war.
The real risk from Brexit is the financial contagion and not the economy that analyst had forecast will suffer. UK is only the world's fifth largest economy, and impact from its downturn will not affect the world.
The real risk could be the persistent weakness of Euro that will affect Asian trade. A weak Euro may push CNY to depreciate further fueling the contagion effect of a currency war.
All posts and charts are for educational and illustration purposes only
Thursday, June 23, 2016
Tuesday, June 21, 2016
Thursday, June 16, 2016
STI Resistance Well Defined at 2785
All posts and charts are for educational and illustration purposes only
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