This week for ASIA market, it was really a nightmare. It rolled down fast and far. Interest rate has already given them so much pressure, and with the additional of RMB devalued, the fear and selling pressure went high. Regardless, retail or fund, everyone threw their towel.
Let me pull out a few charts to show you the fear that caused the fast and far downside to these indices.
Look at the those colourful wave, how wide it was. It showed you the fear from those investors. How fast it came down. Worst, morning opened with a gap down and afternoon closed lower.
So far, STI has came down 17%, Taiwan 22%, Hang Seng also 22%...... Last week, Nikkei was still on the upside, but this week it dropped 8.8% . What about China? Once again, experts said that China lead the whole ASIA markets, scrolled down from the hill. 9-July, SSE has dropped 35% (3373) from its high (5178). Then it rebounded to 4200. Following weeks it travelled between the range of 3500 to 4000. Today it closed at 3509.
China devalued it RMB worried especially countries in the AISA. To China, devalued RMB was to raised up their export competitively. But to other countries, it was a different story. So to stay competitive, we saw other ASIA countries devalued their currencies as well. Plus the worry of US raising their interest rate, the impact on the ASIA markets was like two macho pounding on a person left and right shoulder at the same time.
Now let us look at the Europe market. Let's look at the Europe big brother DAX. So far, they had came down 17%. What about our big brother, US? Let's look at DOW. DOW has been travelling sideway for the past six months. Last week, it broke the sideway range. Till yesterday it has came down 7.4%.
End of next week till the week after next, there are couples of important reports and event going on. China PMI, US PMI, Non-Farm.........and Jackson Hole. Watch closely and trade on what you see and not what you think. Remember today market is mend for trade.
Base on TA:-
From the chart, I see fear. Base on the downside, currently mama bear is pounding on the bull. But far it can go? Most of the ASIA market has dropped more than 20%. Base on FIBO pull plus supported level, the mama may get tire at around 30% downside. The bull may take this opportunity to fight back. Can the bull win the battle? It will depend on whether the papa bear is still sleeping or awake.
Base on fundamental / economic:-
It is common for politician to step in as to save its market, currency........ However, he/she should knows when to step in and when to take a step back. As too much involvement will cause the market to go haywire, confusion and disorder. This is what happen to the current market. First time in history the bull charge for more than five years. He may still have the last breath to fight, however he is really tire right now.
What to watch out:-
As mentioned above - China PMI, US PMI, Non-Farm.......and Jackson Hole. On top of that, I realized that most of the people is really for the increase on US interest rate. The question now is 0.25%, 0.5%, 1% or........... As I had said Fed chairman Janet Yellen knows the consequence, she should be smart enough to go around with the number.
Continue to monitor how the market goes and react to those monthly reports and news. Example if good news and market continue to fall, this is something that you should be watch out for. Once again, today market is mend for trend.
Let me pull out a few charts to show you the fear that caused the fast and far downside to these indices.
STI:-
Another one : Taiwan Future
So far, STI has came down 17%, Taiwan 22%, Hang Seng also 22%...... Last week, Nikkei was still on the upside, but this week it dropped 8.8% . What about China? Once again, experts said that China lead the whole ASIA markets, scrolled down from the hill. 9-July, SSE has dropped 35% (3373) from its high (5178). Then it rebounded to 4200. Following weeks it travelled between the range of 3500 to 4000. Today it closed at 3509.
China devalued it RMB worried especially countries in the AISA. To China, devalued RMB was to raised up their export competitively. But to other countries, it was a different story. So to stay competitive, we saw other ASIA countries devalued their currencies as well. Plus the worry of US raising their interest rate, the impact on the ASIA markets was like two macho pounding on a person left and right shoulder at the same time.
Now let us look at the Europe market. Let's look at the Europe big brother DAX. So far, they had came down 17%. What about our big brother, US? Let's look at DOW. DOW has been travelling sideway for the past six months. Last week, it broke the sideway range. Till yesterday it has came down 7.4%.
End of next week till the week after next, there are couples of important reports and event going on. China PMI, US PMI, Non-Farm.........and Jackson Hole. Watch closely and trade on what you see and not what you think. Remember today market is mend for trade.
Base on TA:-
From the chart, I see fear. Base on the downside, currently mama bear is pounding on the bull. But far it can go? Most of the ASIA market has dropped more than 20%. Base on FIBO pull plus supported level, the mama may get tire at around 30% downside. The bull may take this opportunity to fight back. Can the bull win the battle? It will depend on whether the papa bear is still sleeping or awake.
Base on fundamental / economic:-
It is common for politician to step in as to save its market, currency........ However, he/she should knows when to step in and when to take a step back. As too much involvement will cause the market to go haywire, confusion and disorder. This is what happen to the current market. First time in history the bull charge for more than five years. He may still have the last breath to fight, however he is really tire right now.
What to watch out:-
As mentioned above - China PMI, US PMI, Non-Farm.......and Jackson Hole. On top of that, I realized that most of the people is really for the increase on US interest rate. The question now is 0.25%, 0.5%, 1% or........... As I had said Fed chairman Janet Yellen knows the consequence, she should be smart enough to go around with the number.
Continue to monitor how the market goes and react to those monthly reports and news. Example if good news and market continue to fall, this is something that you should be watch out for. Once again, today market is mend for trend.
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